Strategy Analytics: 5G Smartphone Costs Will Require Return to Subsidy Pricing

The power of 5G won’t be cheap, Strategy Analytics points out in a new report about 5G smartphone costs. The phones are expected to sell for more than $1,000 ($750 wholesale) when they are introduced -- and 5G device prices will decline at a much slower pace compared to 3G and 4G handsets. At those prices, subsidies will need to return for acceptance of these devices by the mass market, the firm adds.