5G Vivo NEX

We talked about the high price tag of the upcoming Samsung foldable smartphone earlier today. We said, in that post, that we expect 5G phones to be expensive as well, as it is usually the case with new technology. While it will not be as expensive as double the price of a premium handset, as the Samsung executive hinted, 5G versions of smartphones will be more expensive than their normal, regular siblings.

A recent report cites sources from Taiwan’s handset supply chain, and they say that Chinese manufacturers will adopt a pricing strategy for selling 5G smartphones at about CNY500 (US$74) more than their current price ranges.

There’s apparently a formula “5G+500” which Chinese vendors will use to increase profitability in 2019. The report also says that “the pricing for the initial 5G phones will represent a premium of about 20% over their production costs”. We’ll see if that’s going to be the case once we see 5G smartphones being announced. We do know that Samsung’s 5G Galaxy S10 X will be expensive, but that phone’s a powerhouse, and Samsung is Korean.

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