US investment bank JP Morgan has made a remark about the upcoming jump to 5G technologies and has estimated that the price of chips which power the next 5G handsets will cost twice as much as chips in 4G smartphones currently.
The news comes from the Korea Herald which revealed what JP Morgan had to say about the upcoming cellular technology scenario. The investment bank said that the average price of several components responsible for powering 5G in smartphones is about 1.85 times that of the components used on the current generation of 4G devices.
The report titled “5g Smartphone: The Next Big Thing? 101 for Supply Chain Beneficiaries” detailed that the average price of memory chips on a 4G phone revolved in and around $59 (approx. Rs 4,100). In contrast to this, the price of the memory chips designed for 5G reached as high as $85.40 (approx. Rs 5,900).
JP Morgan also estimated that the price of 5G baseband and application processors will be $33.40 (approx. Rs 2,300) and $55.60 (approx. Rs 3,900) respectively. Adding 5G phone penetration to its price hike, the investment bank predicted that 5G will profit chip manufacturers significantly with a profit increase of $5.99 billion next year and $14.1 billion by 2021.