Falling Chip Prices Are Making 5G Phones More Affordable: WSJ

The falling price of the 5G phone specialized semiconductors helped make faster mobile service affordable to more lower-income consumers globally, the Wall Street Journal reports. The trend could likely continue over the next two years.

The average price of a 5G system-on-a-chip costs $40 - $45 and could reach $20 late this year or early next year, Counterpoint Research observed. It saw mobile-phone makers putting 5G chips in devices with a retail price of around $150.

Asia's prioritization of 5G chips by chip manufacturers in China and Taiwan is pushing chip prices lower and driving the production of budget 5G-capable devices, Counterpoint admitted. U.S. carrier Consumer Cellular Inc looks to offer a 5G phone priced at $199 by June and one priced at around $150 by early 2023.

WSJ noted that Canalys sees 5G capability spreading to at least 80% of phones priced under $200 globally over the next two to three years, from less than 5% currently. In 2021, Indian conglomerate Reliance Industries postponed the budget smartphone launch with Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), citing an industry crisis.

Apple Inc (NASDAQ: AAPL) recently launched its third-generation iPhone SE, priced at $429.

China's budget phone makers Xiaomi Corp (OTC: XIACY) (OTC: XIACF), Oppo and Vivo are trying to win contracts in India to manufacture phones locally for export, Bloomberg reports. India will likely accomplish $60 billion in exports by 2026."

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