A report in Digitimes suggests premium 5G phones will cost about US$100 more than comparable
The production cost for 5G phones as compared to their 4G predecessors should increase by less than US$80 per unit, including an increase by almost US$50 for 5G modem chips and application processors, and the remaining US$30 for new antennas, PCBs and other materials, the sources indicated.
Digitimes stories like this have usually been accurate in the past. This is much less than the US$200 additional estimated by OPPO CEO Pete Lau.
Dan Adams of Deloitte estimates about a million 5G phones will ship in 2019.
That's less than 1/10th of 1% of his 1.5 billion estimate for phones worldwide. It's really hard to come up with a figure because it is dependent on marketing decisions.
5G production capability should be higher than that, at least in the second half of the year. TSMC's 7 nm process is currently the only source of the chips, but Samsung is getting on track. TSMC is configuring new EUV (Extreme Ultra-Violet) steppers that should raise capacity significantly later this year.
Telcos have not yet decided how much to charge for the phones. Some may price high as they improve their 5G network. Others may want to grab market share with low prices.
We'll all be watching.