5G mobile phones will be shipped on a large scale next year

"In China, large-scale shipments of 5G mobile phones are expected to start next year and occupy 20% of the Chinese mobile phone market." Ville-Petteri Ukonaho, Deputy Director of Research Services for Emerging Device Technology (EDT) at Strategy Analytics, accepted 21st Century Business Herald reporter According to the interview, in other regions of the world, larger-scale shipments of 5G products will be in the fourth quarter of 2020, and its iconic event will be the launch of Apple's 5G products.

As the progress of 5G commercialization has been advanced several times, the focus of the outside world has started to shift to the time of large-scale shipments of 5G products, as well as the time and space for the price drop. Many mobile phone chip manufacturers judge that 5G mobile phones will be shipped on a large scale in the first quarter of 2020, and some analysts even believe that 5G products have begun to ship on a large scale in some markets. Chen Guanzhou, general manager of MediaTek, frankly stated in an interview that one year ago, everyone would have doubts about how many 5G devices will be in the world in 2020, and now this number will be greater than 100 million, which has become the consensus of the industry and the supply chain.

However, compared with 4G products, 5G mobile phones have greatly increased the complexity, which also brings increased costs. In the early days of large-scale commercial use, "expensive" is still a challenge for 5G mobile phones. Domestically, many companies have discussed whether the price of 5G mobile phones can be reduced to 3,000 yuan or even less than 2,000 yuan. Chen Guanzhou also said that MediaTek strongly hopes that the price of 5G mobile phones will fall below 2,000 yuan in the second half of 2020, and the entire industry chain will work hard to achieve this goal.

The arrival of 5G does not mean the departure of 4G. Ville-Petteri Ukonaho, Deputy Director of Research Services for Emerging Equipment Technology (EDT), an industry analyst firm, admits that 4G has a "long tail effect": many regions around the world have not yet begun the transition to 5G. In addition, in the foreseeable future, the cheapest Smartphones will still be 4G products. Chen Guanzhou also said that MediaTek's current strategy in the mobile phone business is very clear: "Play well in the second half of 4G and grasp the business opportunities of 5G conversion."

The arrival of 5G does not mean the departure of 4G. Ville-Petteri Ukonaho, Deputy Director of Research Services for Emerging Equipment Technology (EDT), an industry analyst firm, admits that 4G has a "long tail effect": many regions around the world have not yet begun the transition to 5G. In addition, in the foreseeable future, the cheapest Smartphones will still be 4G products. Chen Guanzhou also said that MediaTek's current strategy in the mobile phone business is very clear: "Play well in the second half of 4G and grasp the business opportunities of 5G conversion."

Subject to various cost factors, in the early stage of large-scale commercial use of 5G, "expensive" will undoubtedly be one of the important resistances for consumers to choose 5G mobile phones. In addition, Xie Yushan also pointed out that 5G has not yet had a "killer" application on mobile phones. Most of the current applications can also be achieved with 4G networks. Upgrading to 5G will not bring obvious benefits, so the use of price concessions to attract consumers to pay The approach may also be limited.