By 2021, nearly 60% of 5G smartphone shipments in China will be cheaper than US$400, while 5G penetration will reach 83% in the next 12 months, market research firm Canalys said in a recent report.
Canalys estimates that by 2020, nearly 280 million 5G smartphones will be shipped worldwide, with approximately 172 million shipped in Greater China, accounting for 61 percent.
The economies of scale provided by the China market will allow vendors to launch more affordable 5G smartphones in other countries, even if 5G infrastructure in those markets is not fully ready, said Canalys Analyst Shengtao Jin.
"It is expected that by 2021, nearly 60% of 5G smartphone shipments in China will be cheaper than US$400, while 5G penetration in China will reach 83% in the next 12 months," commented Jin.
As Realme launched its V3 in September, the first sub-US$150 (RMB999) 5G smartphone in China, 5G officially becomes a feature for entry-level smartphones, Jin said, adding "This milestone has arrived three months earlier than expected and will have a significant ripple effect in other regions, such as Southeast Asia, EMEA, and even Latin America where Chinese vendors are expanding.”
According to data released by the China Academy of Information and Communications Technology (CAIC) on August 10, from January to August, a total of 93.679 million units of 5G mobile phones were shipped in China's domestic market, and a total of 141 new models were launched.