• 5G penetration is rising, two out of three smartphones sold globally were 5G capable, in the first half of 2024.
• Currently, all smartphone sales priced above $400 are 5G capable, and over half of the sales in $100-$249 price segment come from 5G capable devices, but the <$100 remains untapped.
• The cheapest 5G phones available in the market lie in the range of $100-$150, the key now to achieving 5G democratization is to enter lower price bands <$100.

The share of 5G smartphones in total global smartphone sales has been rising steadily over the years, as 5G smartphones have been proliferating into more affordable price segments.

According to Counterpoint's preliminary estimates, two out of three smartphones sold globally were 5G capable in H1 2024. Since the launch of the first 5G-capable smartphone in 2019, OEMs have been quick to introduce smartphones with this technology. 5G-capable smartphone shipments surpassed 2 billion units in 2023. The first significant push towards 5G adoption was the launch of the iPhone 12 series in 2020, which helped 5G penetration surge to nearly 20% in 2020 from merely 2% in 2019.

After the initial hypergrowth phase in 2020-21, 5G sales continued to increase but it remained confined to the premium segment since the price of 5G chipsets was high. In the following two years, 5G smartphones lost momentum, slowing down from triple-digit to double-digit percentage growth and then to just single-digit growth in 2023. By this time, mature markets, which has a high share of mid-range to premium smartphones, were becoming saturated, with 5G contribution crossing 80%. The next wave of 5G growth is set to come from emerging markets like Latin America (LATAM), India and the Middle East and Africa (MEA). However, the main challenge here was to bring 5G to affordable entry- to mid-tier price bands. As of H1 2024, Global 5G smartphone ASPs have declined by more than 30% since the technology’s launch in 2019. This has been possible due to chipset makers narrowing the price gap between the 4G and 5G chipsets, and OEMs strategically selecting components to reduce prices. Samsung, Xiaomi, Transsion Group and more, have gradually introduced 5G-capable smartphones at lower prices, encouraging greater adoption in emerging markets.

Currently, all smartphone sales priced above $400 are 5G capable. The share of 5G smartphones in the $249-$399 segment is also growing rapidly. Nearly half of the $100-$249 price segment is still 4G for now, but the <$100 category remains untapped. The key to achieving 5G democratization is to enter the lower price bands.

Chipset makers have recognized this opportunity and are making positive efforts to bring 5G to the lower price segments. Recently, Qualcomm announced the Snapdragon 4S Gen 2 chipset, which enables 5G capabilities, in the <$100 price segment. OEM Xiaomi will be the first to deploy this chipset, with the smartphone expected to be announced by the end of 2024. This will likely give a much-required push to 5G contribution in the <$100 price segment and further add to the complete democratization of 5G in smartphones, completing another evolution of cellular technology in the smartphone industry.