Perhaps more than any company, Apple is transitioning the 5G upgrade cycle to a license to print money. But the reality is that, at this stage of deployment, the true importance of faster mobile broadband is yet to be fully realized.
Apple takes the biggest slice of the 5G cake
Device deployment, at least, seems to be accelerating. Counterpoint claims that sales of 5G-capable smartphones surpassed those of 4G devices for the first time in January 2022, reaching 51%. At the same time, recent data from Gartner and Canals Confirms that Apple devices accounted for a huge chunk of smartphone sales in the same period.
That means Apple is driving 5G adoption. As Gartner said, “There was strong demand for iPhones due to 5G upgrades.”
Morgan Stanley notes that Apple’s iPhone installation base has now been reached about 1.1 billion users. Apple is expected to sell now 30 million iPhone SE devices capable of 5G in 2022 as well as ongoing sales across its iPhone 13 5G range.
But, to a significant point, many people who buy an iPhone 5G are still only able to use 4G service. Data show that while 62% of people in the US have 5G compatible phones, only 49.2% use their 5G connection regularly.
Millions still think they are using 5G, even when they are not.
Network proliferation has now come to an end on the proliferation of devices
You see, while there are now more than 400,000 compatible towers in operation, only 230 million people have access to these networks, Whistle Out Claims. It predicts that by the end of 2022, 1.08 billion people worldwide will have access to a 5G – capable smartphone.
They do not need to have network access. This reveals the reality of 5G deployment at this stage of the hype. It is not a universal case. Those areas of most advanced deployment (such as China) are being used seriously.
From a carrier perspective, it makes sense to prioritize deployments in geographies, such as business hubs, where 5G can make the biggest difference. For sellers, the early arrival of the 5G gravy train makes a lot of sense.
Apple built 44% of the value of the global smartphone market totaled $ 448 billion as a result of its debut, for example. The other four largest sellers took about 41% apart.
ABI estimates 580.3 million 5G smartphones launched in 2021.
Of course, as an increasing number of 5G devices reach people’s hands, carriers will accelerate network provision. They know that 10% or so of users on 5G, they can get started anticipate profitability from their network investment.
Build in the upgrade opportunity
Even at this stage of adoption, we can see hardware upgrade opportunities emerging.
Nations that do not yet support mmWave (the fastest form of 5G) are likely to see vendors pushing ahead with compatible 5G handsets as soon as they do. (ABI estimates that only 81.25 million of the 5G smartphones sold last year were mmWave enabled.)
Apple already seems to be trying to sustain its own upgrade cycle. We think Apple is develop its own 5G radios for future devices and the company also appears to be fully invested in research and development throughout the the next fast mobile standard6G.
What is really happening is investment. Apple and all the smartphone vendors are investing in the future of 5G broadband. The bet is that carriers and smartphone makers can take advantage of other major business / consumer technology transformations in support of the standard hikes. in progress.
The connected everything
This does not apply to remote and hybrid work, of course – it extends to Industry 4.0 and smart manufacturing, fully automated logistics, warehousing and distribution chains, autonomous vehicles and all kinds of additional smart machines, the evolution of private enterprise networks, and much more. other.
The money to be made in these deployments is entirely music streaming services. For example: though Goldman Sachs expects streaming revenue to reach $ 142 billion by 2030, spending on smart manufacturing alone hit $ 950 billion by then.
Mobile connectivity – and the fast 5G broadband infrastructure that consumers are buying today – will underpin all of this digital transformation. And Apple making a strategic decision to make peace with others Entering the transition territory, even as it develops unique services and technologies, will be of great benefit take advantage of more.
Copyright © 2022 IDG Communications, Inc.
Apple is leading the 5G transition, reports say
Source link Apple is leading the 5G transition, reports say