5G-enabled phones are presently becoming a reality, with companys such as OnePlus, Xiaomi and even Lenovo rushing to release the initially commercial smartphone equipped with the technology. Xiaomi has been teasing about it since the release of the Mi MIX 3, however it was only after Qualcomm announced its Sd 855 that the matter went from a chance to an immediate concern.
Since then, a lot has been said about the costs of producing 5G phones – estimatives ranged from up to an far more $100 such as taxes. Now, a report claims that chinese manufacterers have finally settled on a fixed ammount: CNY 500 (around $74). This calculation takes into account a base “4G+500” formula, to be adopted nevertheless of model and maker.
As stated by to researches, this price will barely cover the more costs in producing a 5G phone. Just a modem and a compatible chipset alone are set to price tag about $50, with a further $30 for new antennas and other hardware. This shows that the chinese companies are taking a extra cost-effective approach, opting to gain in volume rather than profit.
Of course, with the increasing competition the price tag of 5G hardware will Furthermore start droppping soon, thus improving the profit margins too. It’s important to note that Those values apply only to the chinese market; european and american users could be searching at higher costs (some say perhaps even as high as $200 to $300 more).