Apple will soon be the leader in 5G phones

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At present, Samsung is the leader in 5G phones. The South Korean tech conglomerate has already released a few smartphones with variants that support 5G networks, such as the Galaxy S10 5G and the Galaxy Note 10+ 5G. A few other smartphone vendors have also started to venture into 5G waters, with China’s Huawei currently being No.2. Apple (NASDAQ: AAPL) was unable to launch an iPhone 5G in 2019 largely because of its two-year lifespan legal war with Qualcomm and hope that Intelligence would be able to provide a competing 5G modem (it couldn’t).

Apples surprise settlement with Qualcomm in April paves the way for an iPhone 5G in 2020. Once arrived, the Cupertino tech giant will become the leader in 5G smartphones.

Apple was unable to include 5G in the iPhone 11 Pro. Image source: Apple.

Take the lead in 2020

Strategic analysis released a research report last week predicting Apple would switch to 5G in the third quarter, quickly overtaking Samsung and Huawei to take the lead in the second half. Apple tends to release new iPhone models in September of each year, towards the end of the third quarter. In addition to 5G, the 2020 iPhone is expected to get a redesigned chassis is reminiscent of the iPhone 4, because Apple uses the current overall design for the third year. These two factors could be a powerful upgrade driver.

“It may seem counterintuitive that Apple, which currently has no 5G phones in its portfolio, could overtake current 5G market leaders Samsung and Huawei,” Strategy Analytics director Ken Hyers said in a statement. . “But with three new 5G models coming next year, Apple just needs to match its current upgrade rates for newly introduced iPhone models to take the lead next year.”

The United States and China will be the biggest 5G markets in 2020, which will favor Huawei and Apple. Once a major player in China years ago, Samsung has faced stiff competition from local Chinese companies that now dominate the country’s smartphone market. Smartphone shipments in the Middle Empire fell 3.6% to 98.9 million in the third quarter, according to IDC, with the top four suppliers being Chinese brands led by Huawei; Apple was # 5.

Longer term, Samsung is expected to regain 5G leadership over time due to its strength in the broader smartphone market as more countries launch 5G networks. “As more markets move to 5G, Samsung will capture the majority of that share due to its dominance in the overall smartphone market and a broader portfolio of 5G devices in more price ranges.” , added Hyers.

Apple on Friday received a series of price target increases from Wall Street, including Wedbush setting a new street target of $ 325, based in part on hopes that next year’s iPhone will lead to a “super cycle” of upgrades.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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