5G-enabled phones are presently becoming a reality, with companys such as OnePlus, Xiaomi and even Lenovo rushing to launch the initially commercial smartphone equipped with the technology. Xiaomi has been teasing about it due to the fact the launch of the Mi MIX 3, but it was only after Qualcomm announced its Snapdragon 855 that the matter went from a chance to an immediate concern.
Because then, much has been said about the costs of producing 5G phones – estimatives ranged from up to an far more $100 like taxes. Currently, a report claims that chinese manufacterers have Last but not least settled on a fixed ammount: CNY 500 (around $74). This calculation takes into account a base “4G+500” formula, to be adopted regardless of model and maker.
As stated by to researches, this price will barely cover the more costs in producing a 5G smartphone. Just a modem and a compatible chipset alone are set to price tag about $50, with a further more $30 for fresh antennas and other hardware. This displays that the chinese companies are taking a a lot more cost-effective approach, opting to gain in number instead than profit.
Read also: Why is the development of 5G network in India so| sluggish?
Of course, with the enlarging competition the price of 5G hardware will also start droppping early, thus improving the profit margins too. It’s key to note that these values apply only to the chinese market; european and american users may be looking at higher costs (some say perhaps even as high as $200 to $300 more).