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Strategy Analytics: 5G Phone Royalty Payments to Generate $20 Billion in 2025

August 30, 2018

BOSTON--(BUSINESS WIRE)--Aug 30, 2018--5G handsets will generate almost $20 billion annually in global royalties for intellectual property (IP) holders in 2025 according to the latest research from.Strategy Analytics’research concludes that three companies, Ericsson, Nokia and Qualcomm will take the lion’s share of those royalties.

While the first 5G smartphone launches are still months away, key IPR holders have begun to reveal their licensing rates for the key technologies that will power 5G devices. “ Ericsson and Nokia combined will take 35% of total global 5G handset royalties in 2025, ” says Senior Analyst Ville-Petteri Ukonaho. “Meanwhile Qualcommwill take over half.” Strategy Analytics research shows that while Ericsson and Nokia hope to charge $5 and $3.50 per device, respectively, Qualcomm will take a percentage of the device’s price.

“The average selling price (ASP) of 5G smartphones will steadily decline over time, but even in 2025, 5G devices will still be three times more expensive than non-5G handsets, ” says Emerging Device Technologies Director Ken Hyers.

The findings of this research are in line with royalty data for earlier generations of smartphones. “Based on this analysis,” says Ville-Petteri Ukonaho, “ total 5G IP royalties will account for approximately 7% of the total wholesale price of a 5G smartphone, which is in line with previous 4G IP costs.” The share of royalties going to the three key 5G IP companies indicates both different approaches to licensing and their relative share of 5G IP.

About Strategy Analytics Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.

For more information about Strategy Analytics Emerging Device Technologies: Click here

View source version on businesswire.com:https://www.businesswire.com/news/home/20180830005532/en/

CONTACT: Strategy Analytics

European Contact:

Ville-Petteri Ukonaho, +44 (0)1908 423 634

vukonaho@strategyanalytics.com

or

US Contact:

Ken Hyers, +1 617-614-0757

khyers@strategyanalytics.com

KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS

INDUSTRY KEYWORD: TECHNOLOGY CONSUMER ELECTRONICS SOFTWARE TELECOMMUNICATIONS MOBILE/WIRELESS RETAIL OTHER RETAIL

SOURCE: Strategy Analytics, Inc.

Copyright Business Wire 2018.

PUB: 08/30/2018 10:29 AM/DISC: 08/30/2018 10:29 AM

http://www.businesswire.com/news/home/20180830005532/en

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