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China's Telecoms Launched 5G Services today with the Collective Goal of gaining 110 Million users in its first year

1 X cover 5g

 

Earlier this week we posted a report titled "Apple's 2020 iPhones will offer an advanced 5G modem, a 3D-Sensing Rear Camera and a 5nm Processor." When Apple introduces their 5G iPhone next year we can only hope that they'll be able to deliver a killer app or accessory like smartglasses to go along with it in order to win against competitors who will have gained an early lead over them on this front.

 

It was revealed in our report yesterday titled "The Top 5 Smartphone Models in 7 Top Markets for Q3 2019," that Samsung won Q3 in South Korea with the number one phone being the Galaxy S10 5G capturing 26% of the market which translates to roughly 3.5 million phones for the quarter. Over the next year, Samsung will be able to lock in 10 to 20+ million 5G-customers in South Korea alone.

 

Of course that's a drop in the bucket when you consider that China just switched on the world's largest 5G network earlier today with the country's three state-run telecom operators, China Mobile, China Telecom and China Unicom.

 

5G smartphones from Apple's competitors will be able to deliver 5G services at rather great prices to encourage adoption. It's being reported that all three networks will be offering 5G plans that start at 128 yuan (US$18) for 30 GB of data per month, giving Chinese internet users access to the ultra fast service.

 

Starting today, 5G commercial services will be available in 50 cities, including Beijing, Shanghai, Guangzhou and Shenzhen, according to Chinese state news agency Xinhua.

 

In Shanghai alone, nearly 12,000 5G base stations have been activated to support 5G coverage across the city's key outdoor areas.

 

Other countries including the United States and South Korea launched 5G services in select areas earlier this year. But China's commercial network is the biggest, according to Bernstein Research, giving the county more influence over the technology's global evolution.

 

"The scale of its network and the price of its 5G services will have a pivotal impact throughout the supply chain," Bernstein analyst Chris Lane said in a research note earlier this week.

 

China has more mobile internet users than any other country, with about 850 million people using their smartphones to surf the internet, according to Xinhua.

 

Analysts at Jefferies predict that China will have 110 million 5G users — about 7% of the country's population — by 2020.

 

While it's only 7% of the Chinese market, Apple will miss out on all that business, technically. Though in reality Apple's loyal fan base are unlikely to switch to an Android competitor based on 5G speeds alone. For more on this story, read the full CNN report.

 

With the right combination of killer apps and/or 5G ready accessories, Apple could quickly make a major impact on the global market next year and experience one of its biggest upgrade cycle booms on record.  

 

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