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Home > News > Industry News > 5G handsets to generate $20bn .....

5G handsets to generate $20bn yearly royalties

  • Author:Ella Cai
  • Release on:2018-09-04
5G handsets will generate almost $20 billion annually in global royalties for IP holders in 2025 says Strategy Analytics , with Ericsson, Nokia and Qualcomm taking the lion’s share.

“Ericsson and Nokia combined will take 35% of total global 5G handset royalties in 2025,” says Senior Analyst Ville-Petteri Ukonaho, “meanwhile Qualcomm will take over half.”

Ericsson and Nokia hope to charge $5 and $3.50 per device, respectively, Qualcomm will take a percentage of the device’s price.

“The 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,” says SA.

“Based on this analysis,” says Ukonaho, “total 5G IP royalties will account for approximately 7% of the total wholesale price of a 5G smartphone, which is in line with previous 4G IP costs.”