Taiwanese Semiconductor Manufacturing Company (TSMC) has projected that the demand for 5G smartphones could reach 300 million units by next year, according to DigiTimes. The company is said to base its projection on the current level of demand for 5G modems as well as premium chipsets which have kept the fab chip manufacturer’s 7nm process running at full capacity.
DigiTimes attribute this disclosure to a leaked internal report which emanated from the Taiwanese company. TSMC’s prediction is more optimistic than the 200 million units or less, that was predicted by other OEMs. Presently, 5G phones account for just 1% of the market but research firm Strategy Analytics predicts that 5G phones will rise to 10% by 2020 as more consumers migrate to 5G phones. The different projections are indications that 5G phones will see increased demand next year as more carriers launch 5G services. Strategy Analytics also projects that 5G phone sales by 2025 could surpass 1billion units globally as more affordable 5G phones get launched.
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Samsung currently leads the market in terms of 5G phone sales, and it owes it all to strong sales in its home country of South Korea. Huawei could topple Samsung next year as the Chinese tech giant is predicted to ship 80 million 5G phones in China next year. That is half of the entire 160 million projected shipments which Strategy Analytics predicted for next year. China is also expected to be the largest 5G market going forward due to the early rollout of 5G infrastructures. Since this is Huawei’s stronghold, coupled with Samsung having only a 1% share in China, it is safe to say Huawei could surpass Samsung ext year in the sales of 5G phones.
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