China leads in 5G base station deployment, network coverage and market share in 5G smartphones, says TrendForce.
Chinese smartphone brands have a 75% share in the H1 global 5G smartphone market.
Total global smartphone production is forecast at 1.24 billion units in 2020 with 5G handset production is expected to reach 235 million units, an 18.9% penetration rate.
Chinese brands are expected to occupy four out of the top six spots of 5G smartphone brands ranked by production volume.
Huawei has shifted its focus to the domestic Chinese market under the impact of U.S. sanctions and in preparation for China’s active 5G commercialization efforts. The company is expected to produce about 74 million 5G smartphones this year.
Apple’s yearly 5G smartphone production is expected to total about 70 million units in 2020, which lands the company in second place.
Samsung’s 5G smartphone production this year is forecasted at 29 million units, placing the company in third place globally.
Vivo, OPPO (including OnePlus, OPPO, and Realme) and Xiaomi are tied for fourth place. Vivo, OPPO, and Xiaomi’s yearly 5G smartphone production volumes are projected to reach about 21 million, 20 million, and 19 million units, respectively.
The rapidly increasing presence of 5G chipsets in the mid-to-low end market is driving 5G smartphone production to surpass 500 million units in 2021, which will potentially account for about 40% of the total smartphone market.
Once 5G chip prices reach a stable level this year, smartphone brands may look to gain additional shares in the 5G smartphone market by sacrificing gross margins.
In doing so, they are likely to accelerate the drop of 5G smartphones’ retail prices, and the market may see the arrival of 5G smartphones around the RMB 1000 ($150) price level by the end of this year.
Incidentally, it is worth noting that the penetration rate of 5G smartphones does not equal the usage rate of the 5G network, which depends on the progress of base station construction.
Since the current 5G infrastructure build-out is pushed back as a result of the pandemic, the global 5G network coverage will be unlikely to surpass 50% before 2025 at the earliest, with complete coverage taking even longer.
Source: electronicsweekly
