Gerrit Schneemann - Principal Analyst
One of the most personal consumer products, the smartphone, will play a key role in delivering the promise of 5G to users around the world. The smartphone is a critical tool for many to access online services, applications, and information—in many cases it is the only connected device available.
From shipments of 254.5 million units in 2020, 5G-enabled smartphones will grow to over 1.4 billion units by 2026. After a dramatic ramp-up in shipments in 2020 and 2021, 5G smartphone shipments are expected to grow 33% year-over-year (YoY) in 2022 and another 32% YoY in 2023. The rapid deployment of 5G connectivity across most smartphone price segments drives penetration to over 87% of total smartphone shipments by 2026.
While the availability of 5G-enabled smartphones is ahead of network deployments in some markets, the groundwork is being done to transition users to future services and applications that will only be available on the latest network generation.
Having access to 5G smartphones, across most price points, will allow users in many markets and life circumstances to benefit from technology enabled by 5G, such as telehealth, municipal services in a connected smart city, digital currencies, and many more use cases.
Source: Omdia Smartphone Feature Forecast Database 2H21
Smartphone OEMs are awaiting the expansion of 5G networks in markets such as India and China to drive the ecosystem of new use cases forward and move beyond the initial stage of network-speed-focused improvements to the user experience.
At MWC, the next wave of smartphones for global markets will be unveiled, setting the stage for the industry for the first half of 2022.
MediaTek has overtaken Qualcomm in terms of unit shipments in 2021. This growth has been driven by growing shipments in the mid-range and low-end price segments in the smartphone market. High-profile announcements of partner OEMs at MWC for devices in higher priced market segments will help push the company’s brand profile and create pressure on Qualcomm.
Realme saw its planned entry into Europe disrupted with the original cancelation of MWC 2020. This year, flagship announcements, such as a foldable device, would highlight the ambitions of the company beyond India and add yet another competitor to the crowded European market.
The introduction of a new foldable smartphone, with availability in western markets, will help the company establish itself as a premium device option to competitors such as Apple and Samsung. So far, Xiaomi has not launched all its flagship models in a consistent fashion across markets. To raise its profile in the premium segment, this is critical.
You can meet with Omdia's expert team at the following events:
London Tech Week (June 13–17, London)
IFA (September 2–9, Berlin)
MWC LA (October 2022, Los Angeles, CA)
