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5G smartphone chips twice as expensive as 4G counterparts

By Anton D. Nagy April 29, 2019, 6:00 am

JP Morgan estimates that the price of 5G chips used inside smartphones is twice as expensive as those currently used in 4G devices. The information appeared in the Korea Herald, citing a paper from the Institute for Information and Communication Technology Promotion that relies on data from the US investment bank.

1.85 times as expensive, to be exact, according to JP Morgan data. That is how much a 5G phone chip costs compared to 4G LTE counterparts used in smartphones. On average, that’s about $85.40 per memory chip for a 5G device, compared to $59 per one for a 4G phone, according to the ICCT. When it comes to 5G baseband and application processors, those cost about $33.40 and $55.60, respectively.

JP Morgan also estimates a growth for the chip industry overall, from the current $540 million this year, to $5.99 billion next year and $14.1 billion by 2021.

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