Have users understood the use of the 5G network? Initial data demonstrates the low level of consumer interest in this technology. According to a recent report by Canalys, relayed by the FinancialTimesthe sale of 5G smartphones is down 7% with 24.5 million devices sold during the second quarter.
find a use
The arrival of the fifth generation of mobile network did not cause the expected wave of conversions. Even in Asia, where technology has developed very rapidly, demand is already falling. This customer disinterest in 5G could be explained by the lack of understanding around the usefulness of a new network. Reduced latency, improved throughput… Arguments that struggle to convince while 4G still fulfills its objective perfectly for a majority of consumers.
“The hype around 5G has waned, and demand has shifted to more practical aspects of smartphones, such as battery life, storage, processor speed and camera quality”explains Chiew Le Xuan, analyst at Canalys.
The specialist also underlines the overall lack of assimilation of users. What are the real benefits of owning a 5G smartphone in 2022? For Sanjiv Gossain, general manager of the operator Verizon Business, it is still necessary to explain with pedagogy “the art of the possible” of this new network.
An immature technology
The relative success of 5G could also be explained by the slow rollout of actual 5G technology. In France and around the world, users of a 5G phone still only have access to a first version of the process. The most advanced iteration of the technology, the “Standalone 5G” was launched by around 30 out of 200 operators worldwide. In France, the arrival of this new generation is expected for 2023.
At the same time, galloping inflation which is cutting into household budgets is not helping customers to change phones or upgrade to a suitable package. Only the professional market would begin to find real interest. The gradual deployment of private networks is further accelerating the phenomenon. This new option allows companies to privatize a 5G network in order to use the connection without sharing. A safe added value which has the merit of attracting many cutting-edge industries.
More than a necessity, switching customers to the 5G network is a vital need for mobile operators. Billions of euros have been invested in the acquisition of frequencies (2.17 billion in France). A return on investment is now expected in order to make the equipment profitable. With the start of an economic recovery and the arrival of a more mature 5G, 2023 will therefore truly be a test year.