The first 5G Smartphones are coming soon, and will be more expensive than their 4G counterparts. But how much more expensive, and for what reason?
ΜA report claims that Chinese manufacturers have adopted a "5G + 500" formula, ie an additional CNY 500 (ie $ 74 / € 65) as a hat.
This move may eventually be necessary, as they try to cover the additional cost of producing a 5G phone. A 5G modem and a chipset compatible with the new technology are expected to add almost $ 50 to the price of the device, and an additional $ 30 for new antennas and other hardware necessary for compatibility with the new networks.
This report aligns with initial estimates of $ 100 MSRP (tax accounting) price increases. As far as the western markets are concerned, this increase in the prices of 5G devices can be even greater, reaching even the sums of $ 200 - $ 300 as a "hat" for the new technology.
Because of this, 5G modem vendors are looking forward to a big jump in profits. All the big players have announced 5G modems like: Qualcomm, Samsung, HiSilicon (Huawei), Intel and MediaTek
Of course, with this competition emerging, the prices of 5G hardware should start to fall rapidly, which will also improve the profit margins of the phone manufacturers.
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