When young people are replacing their cell phones, I believe that some of them will come up with this thought: “Why are cell phones so expensive nowadays? It’s almost two months’ worth of my salary”. Recently, we finally received some good news, alluding to the fact that the 5G mobile chip price is expected to decline significantly, helping 5G universalization.
Recently, research firm Counterpoint Research predicted that the average price of a 5G system on a chip (SoC) is expected to drop to $20 (about RM 83.89) by the end of this year to early next year, indicating that by reducing its cost through mass production, 5G technology will move towards affordable smartphones, driving the popularisation of 5G technology along the way.
Jeff Fieldhack, research director at Counterpoint Research, said 5G technology has moved from the high-end smartphone market, which costs more than $550 (about RM 2,307), to the mid-range market, which costs between $250 and $550 (about RM 1,048 to RM 2,307), and is now even available in some countries.
The 5G phones are now even available at a cheaper price in some countries. In response, Counterpoint Research analyst Neil Shah explained that chip makers in China and Taiwan are prioritizing the production of 5G chips, a move that should keep chip prices down and drive the production of affordable 5G devices.
“When low-cost smartphones can also support 5G capabilities, consumer adoption of 5G will also increase.”
According to current sources, less than 5% of smartphones worldwide are equipped with 5G capabilities and priced at less than $200. In this regard, research firm Canalys analyst Runar Bjørhovde expects this share to skyrocket to over 80% in the next two to three years.
