Ericsson Less Optimistic Than Qualcomm For 5G Shipments In 2020

Nov 25
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At its Analyst Day 2019 last week, chip giant Qualcomm (NASDAQ:QCOM) shared information that is critical for the global 5G market. The next-generation cellular network will not only boost download speeds, but it'll also open up a lot of platforms for consumer usage. Devices connected to the Internet of Things and automobiles, among others, will benefit.

Qualcomm, at its analyst day, stated that it expects 5G handset shipments to stand somewhere in-between 175 million - 225 million units. Since the company has customers all over the globe, its estimates are useful for gaining an insight into what device makers are thinking. Today, Ericsson (NASDAQ:ERIC) is out with some numbers of its own. Take a look below for more details.

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Ericsson Believes That Global 5G Device Shipments Will Reach 160 Million In 2020

Given the nature of its business, Qualcomm's estimates for unit shipments relate directly to smartphones. Ericsson, on the other hand, is concerned primarily with manufacturing cell tower equipment, including core and non-core equipment for 5G base stations. Therefore, while Qualcomm's figures let us precisely concern ourselves with smartphones, Ericsson's numbers are slightly broader.

The Swedish carrier who is also traded on NASDAQ has released its annual Mobility Report today. This report contains key figures about what Ericsson believes is the outlook of the global cellular market.

Ericsson believes there will be 2.6 billion 5G subscriptions in 2025.

Data collected and analyzed by Ericsson (NASDAQ:ERIC) suggests that in 2020, approximately 160 5G devices will be shipped. This estimate is modest when compared against Qualcomm's figures provided above, as the low end of the US chip giant's predictions is 175 million shipments. However, 160 million is still more than ten times of the 13 million unit shipments Ericsson estimates will take place by the end of this year.

The bulk of the 160 million projection will be formed through the 5G boom in China, where the network is already official. However regionally,  it'll be North America that will lead 5G subscriptions in 2025, with 74% of the total cellular subscriptions in the continent expected to be for 5G connections. North East Asia, on the other hand, will see 56% of its total cellular subscriptions constitute of 5G networks.

Right now, Asia is ahead of North America and Europe in 5G deployment. China and South Korea have made significant advances in providing their citizens with the network. However, a couple of years still remain before 5G networks become the norm.

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