4G chips get more expensive and 5G models get cheaper

According to various industry sources, prices for 5G SoCs will continue to fall in the second half of this year, as opposed to prices for 4G models, which will rise steadily during the same period. The source explains it this way: the demand for 4G-enabled chips is still great, but the supply is steadily declining.

It's no secret that hardware manufacturers are focusing on building 5G-compatible hardware, with Qualcomm and MediaTek now offering 5G-enabled solutions across all price points. Thus, the production of 4G chips is declining, which leads to higher prices.

Since most markets are still dominated by 4G networks, these phones are now generating higher margins for merchants, consistently outperforming 5G-enabled smartphones.

Chinese mobile phone makers believe that growth in demand for 5G phones will remain stable over the next 2-3 years, with shipments expected to double each year.

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