Global shipments of 5G smartphones will increase more than ten times this year, from 19 million units in 2019 to 199 million in 2020 , according to the latest Strategy Analytics forecasts . However, sales of smartphones with fifth-generation connectivity this year will be limited due to the fear that revolves around the influence of the new coronavirus (COVID-19) and also due to a global economic slowdown.
5G smartphones will be the fastest growing smartphone category in the smart phone market worldwide this year. The analyst firm estimated that 5G smartphones accounted for 1 percent of all smartphones shipped globally in 2019, which is expected to increase to 15 percent in 2020.
Strategy Analytics forecasts for 5G smartphone shipments in 2020 worldwide
The first 5G networks were turned on in several countries, in 2019 ensuring ultra-fast speeds, low latency, low power and high network capacity, making not only smartphones, but billions of interconnected Internet of Things (IoT) devices. According to market analysis firm SA , consumers want to switch to 5G smartphones for faster access to their favorite entertainment content, especially videos and games.
China , the United States , South Korea , Japan and Germany are expected to be the largest growth markets for 5G smartphones this year. According to the Strategy Analytics, the sales of 9 out of 10 5G smartphones sold worldwide in 2020 will be combined in these five large countries. Large markets, such as India and Indonesia , are instead lagging behind on the expansion of 5G, not expected on the mass market for at least another year or two.
The global 5G smartphone industry is growing rapidly but the current fear of #coronavirus and the consequent economic slowdown will put a limit on the overall demand for 5G smartphones in 2020. The COVID-19 epidemic is currently limiting smartphone production in Asia, which is why several factories that manufacture smartphone components have stopped, not just 5G. In addition, again due to fear of the coronavirus, the influx of consumers to retail stores to buy new 5G devices has decreased in some parts of China.
The biggest slowdown in 5G smartphone sales will be recorded in the first half of 2020, with the market expected to start recovering from the second half of the year if the coronavirus is more controlled.
It should be noted that while Strategy Analytics has focused its relationship on 5G smartphones, sales of smartphones in general may be limited by the same causes.