The US Market Has Sold Less Than 30,000 5G Mobile Phones

The 5G development in the US market seems to be somewhat slow. According to BayStreet Research, as of the end of the second quarter of 2019, US telecom operators sold only 29,000 5G terminal devices. The company predicts that this sales figure will not grow too much throughout 2019.

“This is a very small volume,” Cliff Maldonado, founder of BayStreet Research. “The value needs of consumers (for 5G terminal equipment) are not clear.”

Undoubtedly, 5G is still in its infancy in the United States. Currently, the service is only available in the US for a few months, and there are only a few cities with network coverage, and there are not many 5Gs already on the market. These phones are not cheap: for example, the Samsung Galaxy S10 5G phone sold by Verizon costs $1,300.

Therefore, it is no wonder that the sales of the first batch of 5G mobile phones are flat.


Figure: US 5G mobile phone sales.

The 5G Moto Mod accessory is not listed in the above figure. Users can use this accessory to access and access the Verizon 5G network on some existing Motorola smartphones. Cliff Maldonado estimates that the sales of this accessory is only 1,000-2000.

BayStreet Research’s data comes from public releases and private data. Cliff Maldonado noted that the company’s third and fourth quarter data is an estimate. He also pointed out that 5G mobile phone sales in the next few months will not (and cannot) include unreleased terminal equipment.

What does this sales status mean?

If the United States is competing with South Korea on 5G, then it is clear that South Korea has gained a significant lead. South Korean operators have more than 1 million 5G subscribers. Moreover, South Korea’s 5G network has covered many major cities in the country, and three operators in the country have already provided 5G services.

US carriers commits to improving the 5G network this year and next. T-Mobile and Verizon executives promise to sell 5G phones with lower prices. And T-Mobile and AT&T are committing to providing 5G coverage nationwide next year.

In addition, many in the industry believe that the launch of 5G in the United States may eventually take up to 10 years, operators will need to deploy 5G on potentially millions of small cells, use a wider spectrum band, and must invest Techniques such as mobile edge computing. But these technologies can support a wide range of new services, such as real-time virtual reality and autonomous driving.

For these reasons, many in the industry are optimistic about the overall outlook for the US 5G. But in the early stages of 5G development, most of the actual customers are on the sidelines.

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