5G Ecosystem – August - Supply Chain Market Research

5G Ecosystem – August

9/10/2021

5G Ecosystem – August

Despite shortages, plant closings, and higher prices for most CE products, 5G smartphones continue to grow with device count growth remaining above the trend line since April. Of the three primary indicators we look at, only one, the number of new form factors, did not increase in August. We see that of little concern given that number, which represents new potential CE devices that have yet to be ‘5G enabled’, has been steady at 22 since March and already includes smartphones, indoor & outdoor CPE devices, 5G modules, routers, gateways, laptops, hotspots, tablets, in-vehicle routers, USB modems, and a number of specialty 5G devices, such as robots, TVs, cameras, repeaters, vehicle OBUs, and a vending machine, so it is becoming a bit harder to increment that number, although it is still up 22.2% y/y.
More importantly the number of 5G vendors increased by 7.7% in August (65.6% y/y) and the number of devices grew by 5.7% (+147.1% y/y) and all categories (other than ‘Form Factors’) saw both m/m and y/y growth. While the charts paint the picture, we put August 5G growth, y/y growth, and two-year growth in the table below for clarity. We note that there were no 5G tablets available in 2019.

With the release of the iPhone 13 still scheduled for October, we expect 5G smartphone shipments to see substantial increases in the 4th quarter. Last year, despite the October 2020 release, the iPhone 12 accounted for ~24% of 5G smartphones last year, and while the 5G smartphone market is a bit more diverse this year, both the iPhone 12 and the upcoming iPhone 13 are expected to account for ~1/3 of all 5G smartphone shipments this year.