Rising 5G demand to fuel smartphone market growth

Analyst company IDC expressed optimism on smartphone market growth in Q4, pointing to rising demand for 5G models as a main driving force.

Shipments are expected to grow 2.4 per cent year-on-year to 377.7 million units. The upward trend is tipped to continue in 2021 with a 4.4 per cent rise over 2020 thanks to “an impressively quick supply chain recovery”, and “significant incentives” from OEMs and channels on 5G devices.

Ryan Reith, VP of Worldwide Mobile Device Trackers, explained “supply-side momentum” heading into the current quarter and beyond “remains strong”, building on progress made in Q3.

Reith explained a negative impact on shipments in the first half of the year caused by Covid-19 (coronavirus)-related lockdowns had turned to a positive in H2, with many consumers shifting spending from travel and leisure activities to consumer electronics.

IDC dubbed 5G “the driving force for the industry right now”, with shipments of compatible units expected to account for almost 10 per cent of the total in 2020. The proportion is tipped to hit 29 per cent in 2024.

But it noted a key factor in future 5G shipment growth would be bringing the cost of devices closer to, or on par with, 4G handsets.

It expects 5G ASPs of $611 in 2020, predicting this would decline to $453 in 2024.

Subscribe to our daily newsletter
Back

Source Article