Sales of 5G smartphones have surpassed 4G phones for the first time, China leads the race

It’s been a while since the first 5G smartphones were launched. While the network is still amiss in India, many smartphones come with 5G ready technology. A new report has claimed that for the first time 5G smartphone sales have surpassed 4G smartphone sales. Counterpoint Research has released a study claiming 5G smartphone sales have reached 51% sales globally, in the month of January 2022.

According to the report, China, North America and Western Europe were the biggest drivers of this growth. China is the leader in terms of 5G penetration in the world. The country has 84 percent penetration of 5G smartphones in January. Counterpoint claims that this new push for 5G comes from Chinese telecom operators, combined with the readiness of OEMs to supply competitively priced 5G smartphones to consumers.

The 5G smartphone penetration for North America and Western Europe reached 73 percent and 76 percent respectively. Apple released its maiden 5G devices in late 2020 with the iPhone 12 Series. The sales of 5G devices have seemed to rise in North America and Western Europe after the launch of 5G iPhones. North America and Western Europe registered a sales share of over 50 percent and 30 percent respectively.

Counterpoint claims 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. Many iOS loyalists will also be moving to the current generation of the iPhone 13 series throughout this year.

Coming to Android, affordable 5G-enabled chips by MediaTek and Qualcomm have led to expansion of 5G in the Android ecosystem. Android 5G smartphones have now entered the mid-to-high ($250-$400) price segment. Over time, more and more cheaper Android devices will come with 5G-enabled chipsets. Counterpoint claims it is trickling down to the $150-$250 price range, contributing one-fifth of the 5G sales in January.

The Asia-Pacific, Middle East, and Latin America regions are still reliant on 4G for mobile data connection. Counterpoint claims these will be the next focus areas for OEMs to increase 5G penetration. 5G models in the sub-$150 price segment are the sweet spot for these regions. Low-end 5G SoCs are roughly priced at more than $20 at present. The report claims that once it comes down to sub-$20, there will be more 5G smartphones in the budget segment.

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