5G-enabled smartphones are facing a drop in prices as popularity rises

It's been almost 13 years since 4G services were announced globally. And now the world is getting itself ready to welcome 5G.

With the upcoming 5G mobile phones, it is expected that both 4G and 5G devices will get cheaper. However, this shift can take the average selling price higher. Statistical data analysis suggests that almost 80% of mobile phones will be 5G enabled in 2026, whereas the figures for 2022 put it at almost half of what is about to come in 2026. On the other hand, it is also expected that prices will see an overall rise.

A discussion started in the famous discussion forum Quora, 2 years back, in 2020, when it was announced that 5G would soon be making its entry. The discussion was based on the effects that 4G-enabled devices will be going through once 5G is launched. The most appreciated answer stated that it is true, 5 G-enabled devices will give rise to a shift from 4G to 5G but since the demand will be too high, and high demand leads to elevated prices, this is why most users won’t be able to shift.

Since not everyone will be offered 5G, these devices will be forced to co-exist with 4G-enabled devices. And for countries like India, this coexistence of 5G and 4G could last for many years.

In light of a report presented by GSMA Intelligence in 2019, by 2025, almost 15% of mobile phone devices will be offering 5G services to their respective users. And since LTE has been the basis of 5G, so for almost 10 years, 4G is going to hold its spot.

As shown in the International Data Corporation report, the prices for 4G smartphones went down from $278 in 2020 to $176 in 2022. By 2026, prices will have dropped to $106.

Similarly, for 5G devices, even though the prices are at an all-time high, the prices went down from $632 in 2020 to $616 in 2022. And by 2026, it is expected to come down to $444.

Chart: IDC

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