5G is going to boost smartphone sales in 2020 leading to a worldwide growth of 3%, providing smartphone OEMs a much needed breather after a sluggish 2019 which saw smartphone sales decline 2% for the first time since 2008, according to Gartner Inc, a research and advisory firm.
A total of 1.57 billion smartphones are expected to be sold in 2020 and 5G handsets will account for 12% of it with 221 million unit sales. The number is likely to grow more than double in 2021 to 489 million units. The overall global smartphone sale in 2021 is expected to be 1.59 billion.
“In 2020, the market is expected to rebound with the introduction of 5G network coverage in more countries. The commercialisation of 5G phones will accelerate in 2020. 5G phones costing under $300 have been announced, so sales growth of 5G phones is expected to exceed that of 4G phones over twelve months,” Annette Zimmermann, research vice president at Gartner said in a press statement.
Gartner attributes the slow growth in 2019 to oversupply in the high-end sector in mature markets like US and Europe and longer replacement cycles at a global level.
Lack of innovation in smartphones was a major reason why consumers are holding on longer to their existing phones. To drive up sales and create more buzz, many OEMs including Samsung even rushed smartphones with foldable screens. However, due to their higher price tag or initial durability issues with the screen this new segment hasn’t got the traction that was expected.
According to Gartner, Greater China which includes China, Taiwan and Hong Kong and emerging Asia Pacific market, which includes India, will remain the key markets with highest expected sale of 432 million units and 376 million units respectively in 2020. North America with 155 million units and Western Europe 147 million units will be the biggest markets outside of Asia in 2020.
Anshul Gupta, senior research director at Gartner pointed out, smartphone sales in India will increase marginally with a YoY of 0.76% in 2020, especially in the basic and premium phones categories.
“The growth will arise from the demand for mid-price smartphones in India. We can expect unit sales to improve in 2020, as compared to 2019. Premium features including improved camera, display at affordable price will be key growth drivers too,” added Gupta in the press statement.
Qualcomm and MediaTek have already announced their 5G mobile chipsets and many OEMs are expected to launch smartphones driven by them in India too, however, 5G services in the country are expected to roll out not before 2021. According to reports, DoT will hold auctions for 5G spectrum by the end of 2020 or early 2021.
Source: Livemint
