Business

Chinese makers settle on 5G prices: $74 more than 4G phones

5G phones are coming and they will cost more than their 4G counterparts. How much more? A report claims that Chinese manufacturers have adopted a 5G+500 formula, meaning a CNY 500 premium (thats $74/65).

And it looks like that just barely covers the additional costs of producing a 5G phone. A 5G modem and compatible chipset are expected to add nearly $50 to the price then theres $30 more for new antennas and other hardware.

That lines up with the early estimates of a $100 price hike in MSRP (accounting for taxes). Buyers in the West may be looking at a higher premium, however, perhaps as high as $200-$300.

Modem suppliers are looking forward to a jump in profits. All major players have announced 5G modems: Qualcomm, Samsung, HiSilicon (Huawei), Intel and MediaTek

Of course, with this much competition the prices of 5G hardware should start dropping fast, which will improve the profit margins of phone makers.

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