Like other technology sectors, the mobile and wireless market has been affected by COVID‐19. Retail store closings, pullback in consumer spending and uncertainty about the recovery timeline have coalesced, resulting in a slowdown in unit sales.

Despite the macroeconomic concerns, the outlook for the mobile and wireless industry is upbeat given the rollout of the 5G (5th generation) wireless network, with its promise of leading to the next technological revolution.

Accompanying the network’s release is the launch of next generation 5G‐enabled phones, which commenced in 2019 but will be highlighted in 2020 by big name brands entering the market with new 5G-handsets for the first time. These devices serve as crucial enablers for consumers realizing the benefits of 5G and will help spur the industry back onto a growth trajectory over the next few years after the unprecedented and unpredictable events of 2020. 

“Especially when families have two people working from home plus kids doing remote schooling, there is a real struggle for consistent connection speeds. And in fact, for many consumers, their phone network is their most reliable connection. 5G can offer real benefits by providing a fast, private network.”

The Consumer Technology Association (CTA)® U.S. Consumer Technology One-Year Industry Forecast predicts that 5G-enabled smartphones will contribute $43.8 billion in revenues in 2021, up 296% from 2020 levels. According to CTA’s new, in-depth sector forecast, Mobile and Wireless Forecast: 2019-2024, U.S. shipments of 5G-smartphones are projected to be 65 million units by the end of 2021, reaching 173 billion by 2024. 

The following trends driving the smartphone market are discussed in the report.

Household Purchase Intent Is Strong

CTA’s 22nd Annual Technology Ownership and Market Potential Study (May 2020) revealed that 36% of households intend to purchase a new smartphone during the next 12 months, and of the 36%, 75% indicated they were planning to buy a 5G handset.

Retail Store Reopenings

Store closures from COVID‐19 negatively affected industry sales. As stores begin to reopen, consumers should return to storefronts for comparison shopping, providing a boost to handset sales.

5G Handsets Represent Shiny New Objects

Smartphones represent an essential and personal technology tool, which can be associated with a sense of individuality and accomplishment. Heading into the 2020 holiday season, 5G phones will become the shiny new object and may top the tech wish list for many consumers.