5G smartphone sales globally overtake 4G sales in Jan 2022

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New Delhi: 5G smartphone sales reached 51% globally in January 2022, surpassing the penetration of 4G smartphones for the first time as per Counterpoint Research.

Counterpoint Research’s Global Monthly Handset Model Sales Tracker revealed that 5G smartphone sales penetration in China, North America and Western Europe were the biggest drivers of this growth.

China had the highest 5G penetration in the world at 84% in January. The push for 5G from Chinese telecom operators, combined with the readiness of OEMs to supply competitively priced 5G smartphones to consumers, enabled this growth.

The 5G smartphone sales penetration for North America and Western Europe reached 73% and 76% respectively. Apple dominates North America and Western Europe with a sales share of over 50% and 30% respectively.

After Apple shifted to 5G in October 2020 with the iPhone 12 Series, North America and Western Europe saw a natural increase in the sales penetration of 5G smartphones.

These regions are expected to continue contributing substantially to 5G sales globally, as even without offering competitive specs, there is an immense and ongoing demand for a 5G upgrade within the iOS user base.

This demand is also fuelled by iPhone users who are ready for new devices after years of holding on to their older iPhones. For many, holding periods are nearing four years, the average replacement cycle for iPhones.

Thanks to the affordable chips offered by MediaTek and Qualcomm, Android 5G smartphones entered the mid-to-high ($250-$400) price segment and are now trickling down to the $150-$250 price range, contributing one-fifth of the 5G sales in January.

Asia-Pacific, the Middle East and Latin America are the next focus areas for OEMs to increase 5G smartphone sales penetration For these regions, 5G models in the sub-$150 price segment are the sweet spot but currently dominated by 4G.

At present, the low-end 5G SoC is priced over $20, however, once it falls below sub-$20, then it will lead to 5G smartphones in the budget segment, according to Counterpoint’s Component Tracker Service.

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