5G handset royalties to hit $20b per year in 2025

31 Aug 2018
00:00

Qualcomm, Ericsson and Nokia will together to capture over 90% of total 5G smartphone royalties in 2025, Strategy Analytics has predicted.

In a new report, the research firm forecast that Ericsson and Nokia combined will take 35% of 5G handset royalties in 2025, while Qualcomm will take well over half.

While Ericsson and Nokia plan to charge a flat $5 and $3.50 per device respectively, Qualcomm plans to demand a percentage of the device's price, up to $16.25 for premium devices.

Based on its analysis, Strategy Analytics predicts that total 5G royalties will account for around 7% of the total wholesale price of 5G smartphone, which is in line with the proportion for 4G smartphones.

In 2025, the company expects 5G handsets to be generating nearly $20 billion annually in global royalties, with cumulative 5G royalties meanwhile expected to pass $55 billion.

“The average selling price (ASP) of 5G smartphones will steadily decline over time, but even in 2025, 5G devices will still be three times more expensive than non-5G handsets,” Strategy Analytics emerging device technologies director Ken Hyers said in a statement.

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