5G Dominates Early 2024 Smartphone Market, CounterPoint Finds

According to CounterPoint, 2 out of 3 smartphones sold in the first half of 2024 were 5G-capable. The first 5G-capable smartphone was introduced in 2019, and since then, OEMs have introduced a number of smartphones capable of 5G networks. In 2023, the shipment of smartphones with 5G capability surpassed 2 billion units. In 2019, the 5G-capable smartphone penetration was just 2%, which increased to 20% after the launch of the 5G-capable iPhone 12 series in 2020.

During 2020-21, the sales of 5G-capable smartphones were slowly increasing, but they were limited to the premium segment because of the high cost of 5G chipsets. In the next two years, 5G smartphones dropped from triple-digit percentage growth to single-digit percentage growth. Mature markets had high shares of mid-range to premium smartphones with 5G contribution, and they crossed 80%.

It is expected that India, Latin America, the Middle East, and Africa will be emerging markets for 5G-capable smartphone growth. The biggest challenge here is that 5G smartphones should be available in lower price tiers. In the first half of 2024, the ASPs for global 5G smartphones had already dropped by 30% since their release in 2019. This became possible when chipset makers reduced the price difference between 4G and 5G chipsets. Transsion Group, Xiaomi, and Samsung have introduced 5G-capable smartphones at cheaper prices now.

Right now, all 5G-capable smartphones have prices above $400. Smartphones priced between $249-$399 are also getting popular. $100-$249 smartphones are still 4G for now. Many 5G chipset makers are making efforts to bring 5G to lower prices. OEM Xiaomi is going to be the first company to introduce a chipset priced below $100, which will be available by the end of 2024.

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by Arooj Ahmed via Digital Information World