The latest research report by Canalys shows that the global 5G smartphone shipments will amount to around 280 million in 2020. This figure is coined amidst global smartphone recovery.
Notably, out of this 280 million units, China would be the key player for the majority portion. To be more specific, China will account for 62% of shipments.
Moreover, North America and EMEA regions will follow China respectively in global 5G smartphone shipments in 2020. Well, the pandemic is not over yet.
Countries especially India, the USA, Brazil are facing severe COVID-19 outbreak. However, to revive the economy offline stores are gradually reopening.
In fact, this is also improving the logistics and production of the devices. Smartphone brands will be looking to dispose of as many smartphones as possible, either online or offline.
Apparently, the holiday season will see the launch of some new exciting devices along with sales during the post-lockdown period. All these factors will contribute to a more stabilized second-half of 2020.
Commoditization of 5G smartphones in China would be the driving factor
Well, Chinese smartphone giants are working tirelessly to bring new products every now and then. Besides, the Realme V3 launched this month for a price tag of US$150, would help bring 5G in the hands of entry-level smartphone users.
It is a well-known fact that Chinese smartphone brands are expanding their presence in other regions. For instance, Southeast Asia, EMEA, and even Latin America.
These regions will also soon see affordable 5G smartphone releases by these Chinese smartphone OEMs. This is even after considering the fact that the 5G spectrum is not fully developed in these regions.
The availability of affordable 5G smartphones will help consumers to be future-ready. The 5G infrastructure across the globe is also expected to develop at a rapid pace in the second half of 2020.
Notably, the report highlights that around 60% of the 5G smartphone shipments in China would cost below $400. China is also expected to develop 5G infrastructure by 83% in the next one year.
Canalys projects smartphone volumes to decline by 10.7% in 2020 compared to 2019
Europe is going to see a slow penetration to 5G in 2020 and 2021, trailing behind Greater China and North America. Because of the uncertainty surrounding Huawei.
The report also forecasts that the smartphone volumes will go down by 10.7% in 2020 compared to 2019. The reason behind is nothing that is unknown.
Fortunately, the forecast also shows a rebound of volumes by 9.9% in 2021. So, overall, 2021 is expected to bring back the normalcy in the smartphone market, which is heavily affected due to the pandemic.