New iPhone to catapult Apple to head of 5G smartphone market in 2020, analyst says
Apple is expected to take a seat at the head of the 5G smartphone table in 2020 upon introduction of an iPhone capable of taking advantage of the speedy network technology, according to new research from Strategy Analytics.
The research firm forecasts Apple to take a "dominant" position in the 5G sub-sector despite a relatively late entry, currently projected to land within the company's typical fall iPhone release window in 2020.
"It may seem counterintuitive that Apple, which currently has no 5G phones in its portfolio will be able to pass current 5G market leaders Samsung and Huawei," said Ken Hyers, director at Strategy Analytics. "But with three new 5G models coming next year, Apple merely needs to match its current upgrade rates for newly introduced iPhone models to take the lead next year."
With a healthy marketshare and increasing churn rate, iPhone can easily take the 5G crown in one fell swoop. Other manufacturers, some of which already field 5G handsets, need to build a market presence device-by-device.
Strategy Analytics Associate Director Ville-Petteri Ukonaho adds that Apple has an opportunity to cast a wide net with iPhone, especially in important markets like China and U.S. Both regions are on the forefront of 5G development, with carriers already seeding their respective networks with compatible equipment.
"But with the two largest 5G markets in 2020, China and the USA, dominated by Huawei and Apple respectively, these two vendors are set to lead in 5G next year," Ukonaho said.
In the U.S., for example, Verizon is slowly adding 5G Ultra Wideband services to densely populated metropolitan areas, while the pending T-Mobile and Sprint merger is in part contingent on proliferation of the technology.
Apple is widely rumored to integrate a 5G baseband chip in a next-generation iPhone slated for release in 2020. Industry insiders believe Qualcomm to supply 5G modems in the near term, with Apple potentially introducing in-house 5G hardware as early as 2022.
While Apple is anticipated to lead the 5G field in 2020, competitors will quickly catch up and overtake the iPhone maker as the technology becomes a standard feature.
"Despite the strong showing that is expected for Apple in 5G in 2020, in the longer term Samsung will regain the 5G crown," Hyers said. "As more markets cut over to 5G, Samsung will capture the majority of that share by virtue of its dominance of the overall smartphone market and a broader portfolio of 5G devices across more price-bands."
The research firm forecasts Apple to take a "dominant" position in the 5G sub-sector despite a relatively late entry, currently projected to land within the company's typical fall iPhone release window in 2020.
"It may seem counterintuitive that Apple, which currently has no 5G phones in its portfolio will be able to pass current 5G market leaders Samsung and Huawei," said Ken Hyers, director at Strategy Analytics. "But with three new 5G models coming next year, Apple merely needs to match its current upgrade rates for newly introduced iPhone models to take the lead next year."
With a healthy marketshare and increasing churn rate, iPhone can easily take the 5G crown in one fell swoop. Other manufacturers, some of which already field 5G handsets, need to build a market presence device-by-device.
Strategy Analytics Associate Director Ville-Petteri Ukonaho adds that Apple has an opportunity to cast a wide net with iPhone, especially in important markets like China and U.S. Both regions are on the forefront of 5G development, with carriers already seeding their respective networks with compatible equipment.
"But with the two largest 5G markets in 2020, China and the USA, dominated by Huawei and Apple respectively, these two vendors are set to lead in 5G next year," Ukonaho said.
In the U.S., for example, Verizon is slowly adding 5G Ultra Wideband services to densely populated metropolitan areas, while the pending T-Mobile and Sprint merger is in part contingent on proliferation of the technology.
Apple is widely rumored to integrate a 5G baseband chip in a next-generation iPhone slated for release in 2020. Industry insiders believe Qualcomm to supply 5G modems in the near term, with Apple potentially introducing in-house 5G hardware as early as 2022.
While Apple is anticipated to lead the 5G field in 2020, competitors will quickly catch up and overtake the iPhone maker as the technology becomes a standard feature.
"Despite the strong showing that is expected for Apple in 5G in 2020, in the longer term Samsung will regain the 5G crown," Hyers said. "As more markets cut over to 5G, Samsung will capture the majority of that share by virtue of its dominance of the overall smartphone market and a broader portfolio of 5G devices across more price-bands."
Comments
Android + 5G is going to be a tough sell. Carrier’s are going to have to subsidize phones to promote their networks. A $1000 Android phone isn’t going sell...maybe at $600 (subsidized).
It’s going to be a very difficult environment or everyone. I wouldn’t be surprised if people opt out of 5G for 1 generation older iPhones, or 4G version of the flagships.
Bottom line, the “need” for 5G is limited. Apple is taking the best approach, being late to the party... 5G (in the USA) will really take off when Apple has their own 5G chip.
Yup. 5 years from now when today's iPhone will be bordering on obsolete and the 5G networks will finally be approaching true widespread availability such that all the new uses that nobody's even thought of yet will be just starting to come to fruition.
Yeah, the 5G stuff is all hype, but the carriers are pushing that hype to drive sales, by claiming to have the first/most extensive/fastest 5G network (usually all different carriers). I'd be interested to know how many sales of non-5G phones this drives. I mean, obviously they're selling 5G phones, but those are all really expensive. I wonder how many people hear about 5G, talk to someone in the store, and wind up with a 4G phone "on Australia's* premier 5G network".
* Australia used for illustrative purposes only. The two main carriers have started to push it heavily, without necessarily connecting it to specific hardware.
But then, The Amazing Criswell did as well.
Any new technology gets marketed to the hilt and 5G (being an infrastructure and end user technology) is no different. This is like 3D TVs, curved screens, UHD and of course, 4G.
When the marketers start pushing a technology, consumers will enquire about it. If the product doesn't have that technology, you are on the back foot from the start.
That is what is important. It is important to Apple too but obviously you will never hear them admit it.
People try to play down missing 5G on iPhones. Going so far as to claim it will be years before it takes off. If that were the case Apple didn't have any pressing need to sign a temporary deal with QC (stopping a potentially game changing court case in the process) to guarantee access to a 5G modem. They could have waited until 5G was truly 'ready' and stuck with 4.5G.
The reason they didn't go down that route (and are rumoured to be putting 5G on the entire refresh next year) is that they know it is in fact of extreme importance to have 5G as soon as possible.
5G is rolling out worldwide, now. In some places it has been accelerated and one of those places (China) is a major market. A major market for Apple too. Make no mistake.
Trudging through virtually all of 2020 without a 5G iPhone will be a slog. And in a market where they have been suffering a lot with handset sales. Europe isn't sitting on its laurels either. Switzerland will reach 95% 5G coverage soon.
I am already being blitzed by 5G marketing. MWC2020 early next year will take things to a whole new level and prospective buyers will have the term engraved on their minds.
Currently, 5G phones are flagship phones. Next month they will hit the midrange and next year they will be everywhere. We already know this because the manufacturers of the major SoCs have either made their roadmaps official or will do so at MWC.
What we do with 5G and if we have coverage, is the least of anyone's problems. That is how marketing works.
However, unlike 3D TVs, we will see massive use cases for 5G in both the corporate and consumer arenas.
If 5G is coming your way and you are on a 3 or 4 year upgrade cycle, you really need to think things through before jumping on a new iPhone because this time next year (10 months into your cycle), Apple will be all over 5G - with its own marketing.
Ten months for a potential buyer is a long time. Ten months for a current buyer - flies.
So, far there's a vocal minority spreading a lot of FUD about 5G. But regardless, it's coming. Apple is already late to the party, but its good to hear they will likely catch-up quickly.