International Data Corporation (IDC) recently has released a report on the global smartphone market. The corporation has predicted to say that the smartphone market will only bounce back in the year 2022. IDC analysts further stated, “By the year 2023, 5G handsets will account for 50% of the entire global smartphone market”.
The entire global smartphone market is in shambles right now. This all because of the World-wide COVID-19 pandemic. IDC has estimated that smartphone growth could be returning in 2021. The first returning phase will come with a 9% Year-Over-Year (YoY) jump. It is mostly because the market is expected to shrink by 9.5% in 2020 with 1.2 billion units in shipments. This is when the global smartphone market was still down by 17% YoY.
Owning a smartphone has been a necessity or culture to say in today’s era. From small kids to teenagers to adults to the elderly, everyone needs a smartphone. Smartphone has made our world smaller and simpler. But the entire global smartphone market has a downfall in recent years because of the COVID-19 pandemic.
Ryan Reith, Analyst from IDC believes that the 5G handsets will be the reason behind the global smartphone market comeback. This is also prioritized by the OEMs. Every smartphone manufacturing company have reduced their production plans in this pandemic situation. They even have cut down costs on 4G devices because they believe 5G devices will dominate the global smartphone market by the end of 2020.
The ongoing economic crisis will be the reason behind the continuation of the drop in the Average Selling Price (ASP) of 5G smartphones this year and next year. 43% of 5G smartphones sold in China already priced at under USD. 400. IDC believes that the global 5G smartphone ASP will hit USD. 495 by the year 2023. This will result in an increase in the global smartphone market share of 5G smartphones to 50%.
Nabila Popal, Analyst of IDC believes that the smartphone market will grow by 9% YoY in 2021. But she followed up by stating that the real comeback won’t start until this year. She also believed all the 4G smartphones which account for 80% shipments will play an important role.
5G in Nepalese Smartphone Market
5G Networks were growing and spreading in the world. Smartphones were also getting affordable but due to the COVID-19 pandemic, the rhythm of the 5G ecosystem has shifted. The growing and spreading of 5G Network and 5G supporting smartphones have been on halt ever since. In one or two years, every device is expected to have 5G support which will dominate the smartphone market.
In Nepal, 4G hasn’t even reached every part of the country. Due to COVID-19 spreading, 4G and 5G network expansion has been on halt everywhere. If there were no COVID-19, then the growth of 4G and 5G mobile network coverage would have been tremendous. This has also halted the research on 6G by Samsung. Most of the 5G smartphones launched are also being produced on a small scale, due to the pandemic.
Regarding the availability of 5G phones in Nepal, only one 5G smartphone has been officially launched in Nepal which is Xiaomi Mi 10 5G. As the COVID-19 pandemic eases, we hope other 5G smartphones get launched in Nepal even though there is no 5G network in Nepal. Let us all hope that the global smartphone market bounces back as expected by IDC and we get to see the growth of 5G Network and 5G smartphones around the world.