WEBONLY
The sales penetration of 5G-capable smartphones reached 51 per cent globally in January 2022, surpassing 4G smartphones for the first time, according to Counterpoint Research’s Global Monthly Handset Model Sales Tracker.
The growth was largely driven by China, North America and Western Europe, as per the report.
China recorded the highest 5G penetration in the world at 84 per cent in January.
“The push for 5G from Chinese telecom operators, combined with the readiness of OEMs to supply competitively priced 5G smartphones to consumers, enabled this growth,” the report said.
The 5G smartphone penetration for North America and Western Europe stood at 73 per cent and 76 per cent respectively.
Brands
Apple dominated North America and Western Europe with a sales share of over 50 per cent and 30 per cent respectively.
“After Apple shifted to 5G in October 2020 with the iPhone 12 Series, North America and Western Europe saw a natural increase in the sales penetration of 5G smartphones,” it said.
“These regions are expected to continue contributing substantially to 5G sales globally, as even without offering competitive specs, there is an immense and ongoing demand for a 5G upgrade within the iOS user base. This demand is also fuelled by iPhone users who are ready for new devices after years of holding on to their older iPhones. For many, holding periods are nearing four years, the average replacement cycle for iPhones,” it further added.
Owing to the affordable chips offered by MediaTek and Qualcomm, Android 5G smartphones entered the mid-to-high ($250-$400) price segment and are now trickling down to the $150-$250 price range, contributing one-fifth of the 5G sales in January.
Focus regions
The next focus areas for OEMs to increase 5G penetration will be Asia-Pacific, Middle East and Latin America.
“5G models in the sub-$150 price segment are the sweet spot for these regions, which are currently dominated by 4G,” as per Counterpoint.
The low-end 5G SoC is priced over $20 at present.
Once it is lowered to sub-$20, we will see 5G smartphones in the budget segment, according to Counterpoint’s Component Tracker Service.
Published on
March 20, 2022
