The 5G will soon be present in the first smartphones this year, but this new technology will have a cost and should drive up the price of smartphones, which could lead manufacturers to postpone its integration depending on the market.
For Chinese manufacturers, the additional cost of 5G will be around 500 yuan compared to the prices of 4G smartphones. This will represent around 80 dollars additional split between the application processor ($ 50) and RF antennas and components ($ 30). Adding the margins, 5G smartphones could cost at least $ 100 more than their 4G counterparts.
This additional amount increases the production costs of 5G smartphones by 20%, which should not be too difficult to pass on the upper segment of smartphones but will already be more problematic for that of mid-range smartphones, more sensitive to variations. price and which could therefore reserve 5G for the premium segment at first, estimates the site Digitimes.
The arrival of 5G will do business with component suppliers (modems, antennas) such as Qualcomm, MediaTek, Intel, Samsung or HiSilicon, as well as the Chinese Spreadtrum.
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