2021 Will Be the Year 5G Smartphone Price Points Drop to US$200

ABI Research’s 2021 Trend Report identifies the 3 key 5G Devices, Smartphones, and Wearables market trends that will deliver in 2021 – and the 2 that will not

Oyster Bay, New York - 29 Dec 2020

The 5G smartphone market is now outperforming its predecessor generations on nearly every metric. Between the number of mobile devices, subscribers, and networks available at launch, 5G is the most accelerated mobile technology generation ever launched. This premature acceleration of 5G will drop smartphone price points to below US$200 in 2021, states global tech market advisory firm ABI Research.

In its new whitepaper, 68 Technology Trends That Will Shape 2021, ABI Research’s analysts identify 37 trends that will shape the technology market and 31 others that, although attracting huge amounts of speculation and commentary, are less likely to move the needle over the next twelve months. “For success in 2021, especially after a very challenging 2020, one must understand fundamental trends early, and take a view on those trends that are buoyed by hyperbole and those that are sure to be uncomfortable realities. Now is the time to double down on the right technology investment,” says Stuart Carlaw, Chief Research Officer at ABI Research.

What Will Happen in 2021:

Premature Acceleration of 5G will Drop Smartphone Price Points to Below $200

“The accelerated migration of 5G to lower-tier smartphones will have a knock-on effect on Average Selling Prices (ASPs) and the market’s overall profitability. Indeed, with such a relatively shortened time for those across the value chain to extract decent margins from the market, it is expected that many will start to follow an aggressive pricing strategy to avoid possible declines in overall profits. With the expected frantic pace of plunging 5G smartphone prices, it would be of little surprise if 2021 saw 5G smartphones fall below the US$200 mark, driven by the availability of cheaper components and pricing policies of chipset vendors,” explains David McQueen, 5G Devices Research Director at ABI Research.

What Won’t Happen in 2021:

The Same Smartphone Vendor Landscape

There had been much optimism about in the smartphone market as countries started to emerge from the Coronavirus pandemic, gradually witnessing supply chains, buyer behavior, and demand returning to some level of normality. McQueen says, “Coupled with a quick expansion of 5G down the price tiers, it points to a market that is gradually coming under control and is on track to expand rapidly in 2021. However, while it is not clear what the full extent or lasting ramifications of COVID-19 will be on the mobile device ecosystem, the pandemic is now overshadowed by geopolitical trade wars. These could be a major impediment to the future development of the mobile devices market.”

For more trends that will – and won’t - happen in 2021, download the whitepaper, 68 Technology Trends that Will Shape 2021: Predictions for What Will and Will Not Happen in The Year Ahead

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact ABI Research

Media: Interview an Analyst

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670