Wondering Why 5G Smartphones Would Be Much More Expensive Than 4G?

The newest technology trend is already upon us. 5G looks set to take the world by storm with all the major OEMs configuring their upcoming devices to be compatible with new age network technology. However, one aspect of 5G which can prove to be bothersome to a lot of people is the pricing devices, especially smartphones, carrying 5G chipsets under the hood. Most of the smartphones already announced to be compatible with 5G technology are way more expensive than those with 4G technology. In fact, one of the leading US investment banker, JP Morgan, through a recently released report, has made a statement that the average chips powering the 5G smartphones are expected to be about 1.85 times expensive than the chips powering 4G smartphones. The report published by JP Morgan in 2018, titled “5G Smartphone: The Next Big Thing? 101 for Supply Chain Beneficiaries”, points out the fact that a normal chip powering a 4G based smartphone costs around $59. But, a normal chip powering a 5G based smartphone would cost around $85.40 on an average. Even the baseband and application processors are going to cost around $33.40 and $55.60, respectively. This makes it twice as expensive as those of 4G.