Qualcomm predicts solid 5G smartphone demand across 2020

Posted:
in General Discussion edited April 2020
Qualcomm on Wednesday said it expects the smartphone industry to ship 30% fewer phones in the June quarter amid the COVID-19 crisis, but maintains relatively strong demand for 5G smartphones across 2020.

Qualcomm expects 5G smartphone makers, including Apple, to ship between 175 million to 225 million 5G devices this year.
Qualcomm expects 5G smartphone makers, including Apple, to ship between 175 million to 225 million 5G devices this year.


The San Diego-based chipmaker is the world's largest provider of smartphone modems and, as a key supply chain partner of tech giants like Apple and Samsung, often has deep insights into the smartphone market.

Its lowered shipment prediction for the June quarter, which it revealed on Wednesday, follows a previous 21% drop in smartphone demand in the first three months of the year due to coronavirus.

Qualcomm sold 129 million modems in its second quarter of 2020, and expects to sell between 125 to 145 million in the third.

Previous predictions suggested that 2020 would be a strong year for the smartphone industry due to the rollout of 5G-equipped devices, such as Apple's rumored "iPhone 12" lineup. However, the COVID-19 pandemic has snarled those plans and might soften demand well into the future. While Qualcomm originally expected to ship about 175 billion to 185 billion modems in 2020, it's no longer providing total market predictions.

Despite that, the chipmaker said it expects vendors to ship 175 million to 225 million 5G smartphones this year. That's in-line with some estimates made before the COVID-19 pandemic, but firms like Strategy Analytics are still expecting 5G shipments to be lower in 2020 than originally anticipated.

Currently, the so-called "iPhone 12" appears to be on track for a release in the fall. And while analysts forecast that the lineup could play a part in Apple's post-COVID recovery, market demand is still likely to be lower than expected.

Apple will report earnings for its second fiscal quarter of 2020 on Thursday. While uncertainties remain about the market, many analysts remain upbeat about Apple's long-term prospects.

Comments

  • Reply 1 of 10
    The iPhone will make up the largest chunk of all 5G devices on the planet a month after it launches and will never look back.
    tmaywatto_cobra
  • Reply 2 of 10
    avon b7avon b7 Posts: 5,935member
    It seems QC has suffered a double whammy from Huawei in China.

    Huawei has aggressively lowered (and continues to do) its use of QC SoCs in its own phones while picking up marketshare, taking sales away from its Chinese rivals (which use QC chipsets) in the process. 

    GeorgeBMac
  • Reply 3 of 10
    avon b7avon b7 Posts: 5,935member
    The iPhone will make up the largest chunk of all 5G devices on the planet a month after it launches and will never look back.
    That is impossible.

    https://telecoms.com/503997/chinese-smartphone-sales-plummet/
    GeorgeBMac
  • Reply 4 of 10
    sirlance99sirlance99 Posts: 1,278member
    The iPhone will make up the largest chunk of all 5G devices on the planet a month after it launches and will never look back.
    Whatever 
  • Reply 5 of 10
    yuck9yuck9 Posts: 112member
    Everyone is going to hurt this year.  A lot of people are hurting right now. All payments from rent to car payments are not being made. Unemployment is high and going higher. By the time the iPhone is ready for launch a large amount of people will not be able to afford them. 

    A friend gives away the free lifeline phones. He has seen his sales double in the past month. People have turned off service, selling there phones to get in-line for a free phone and service. Apple IMO is going to have to lower the price on all models in order to sell them.  If stores are not open by the time the 12 goes on sale and people can't touch and feel them, expect more sales loss.  Then on the other side you have others willing to sell a kidney to get the latest and newest iPhone. 
  • Reply 6 of 10
    tommy65tommy65 Posts: 56member
    5G is fast but not from the start since all networks are not updated yet to support the different frequencies. But it will definitely burn a hole in your data package and backpocket. Question yourself do you really need it? Is 4G currently sufficient for all your needs? As an early adopter do you want the latest and the greatest go for it and pay the subscription price. 
    watto_cobra
  • Reply 7 of 10
    avon b7avon b7 Posts: 5,935member
    tommy65 said:
    5G is fast but not from the start since all networks are not updated yet to support the different frequencies. But it will definitely burn a hole in your data package and backpocket. Question yourself do you really need it? Is 4G currently sufficient for all your needs? As an early adopter do you want the latest and the greatest go for it and pay the subscription price. 
    This wholly dependant on where you are. In Spain for example, if you have an unlimited 4G plan almost all of them give you unlimited 5G access too.

    Also, an often overlooked element of 5G is QoS which is vital for certain high bandwidth  services. Obviously gaming but also education (both over fixed line and wireless).

    https://www.telecomlead.com/telecom-equipment/china-unicom-taps-huawei-for-eai-accelerated-education-broadband-94924
    GeorgeBMac
  • Reply 8 of 10
    MplsPMplsP Posts: 3,359member
    avon b7 said:
    tommy65 said:
    5G is fast but not from the start since all networks are not updated yet to support the different frequencies. But it will definitely burn a hole in your data package and backpocket. Question yourself do you really need it? Is 4G currently sufficient for all your needs? As an early adopter do you want the latest and the greatest go for it and pay the subscription price. 
    This wholly dependant on where you are. In Spain for example, if you have an unlimited 4G plan almost all of them give you unlimited 5G access too.

    Also, an often overlooked element of 5G is QoS which is vital for certain high bandwidth  services. Obviously gaming but also education (both over fixed line and wireless).

    https://www.telecomlead.com/telecom-equipment/china-unicom-taps-huawei-for-eai-accelerated-education-broadband-94924
    You guys are lucky in Spain. Here we have AT&T, Verizon and T-Mobile. T-Mo is the only one that has any sort of reasonable pricing structure; Verizon forces you to have shared family data so your teenager can burn through the entire data package in a half hour. They will then happily automatically add (and charge you) for more data which you find out about at the end of the month.

    As expected, the 5G rollout is proceeding slower than promised here in the US. I’m sure COVID will slow it some as well. I’ve made the point repeatedly that the vast majority of benefits of 5G are for non-smartphone use. Many also involve the network infrastructure independent of the device. What I don’t know and haven’t seen any information on is what benefits, if any, 4G devices will I see from 5G.
  • Reply 9 of 10
    GeorgeBMacGeorgeBMac Posts: 10,494member
    We can speculate on the short term impact of Corona virus on 5G and mobile devices.
    But, I think, long term the Corona virus kicked off a trend that will, long term, be a tsunami impacting both communication technologies as well as all forms of computing.  It will be wave that cannot be rolled back.  

    Namely:   This virus has triggered a surge in Telemedicine, multiple forms of remote work-from-home, as well as cyber schools.

    These are technical innovations for which much of the technology has been available for years but never exploited.

    But, that tiger has been unleashed.
    -- The healthcare industry will realize it can cut its costs (sometimes drastically) while better serving the population  
    -- Businesses will realize that they don't have to pay for expensive office space and travel for meetings.
    -- School boards and administrators will realize they can leverage cyber schooling to reduce costs while improving and modernizing the education students receive.

    And that wave will impact all forms of computing and increasingly emphasize communications.  
    For instance:   I don't think its a question of IF we will see a 5G modem in a MacBook, but WHEN!

    The laggard though will be the U.S. as vast swaths of the country will not have access to modern communication technology because our for-profit communications industry cannot profit from expanding into low population areas.  But meanwhile, under-developed countries may likely benefit the most as healthcare, remote work opportunities and remote schooling will be made available where it was not physically and economically feasible before.   They U.S. needs to WTFU.

Sign In or Register to comment.