EXCLUSIVE INTERVIEW
EXCLUSIVE INTERVIEW THERE WILL BE 20 OPERATORS OFFERING 5G BY THE END OF THE YEAR IN EUROPE Anna Ahrens Senior Research Analyst, Mobile Handsets, IHS Markit SWITCH ON TO 5G 5G has the power to drive the smartphone category into a new era. No wonder it has been in such high profile at IFA With the many announcements being made at IFA regarding 5G, the future looks bright for a mobile phone category that had stalled. We spoke to Anna Ahrens, Senior Research Analyst, Mobile Handsets, IHS Markit and started by asking her about the market for 5G. This IFA has been very important for the smartphone market, which is one of the most dynamic markets in the world right now in consumer electronics. 5G is a big topic and we have seen very important announcements at IFA, which will drive 5G adoption in mobile devices. Which were the key announcements? Samsung is including 5G in the mid-range of its phones – which is the first time that 5G has come to the mid-range. Initially, manufacturers put 5G chips exclusively in their flagship phones and now, following Qualcomm’s announcement at IFA, Samsung is bringing the same 5G feature not only on its flagship phones, but also to phones in its 6 and 7 Series. How has 5G advanced around the world? The first 5G network was introduced in Korea, followed by the US, and then Switzerland came on board. What is interesting about 5G in Europe, is that the first phone Switzerland adopted for its 5G introduction was a Chinese manufacturer (Operino). Now we have tests across Europe. The UK has started with 5G; in Germany, we have several cities and areas that have started; and Finland, Ireland, Italy and Spain are coming with 5G. There will be 20 operators offering 5G by the end of the year in Europe. In Korea, there are already one million people with a 5G subscription, and the numbers are increasing very fast, since its introduction earlier this year. We estimate that 9.5 million 5G units will be sold this year globally, with more than 400 million units sold in 2023. What are the barriers to 5G from an end user perspective? The barrier is the infrastructure at the moment, not the hardware of smartphones. The infrastructure will come. In this case, we are speaking about the first hardware being ready for 5G before the infrastructure, which is the first time in the history of the infrastructure and smartphone relationship. For consumers, 5G brings a new experience, with higher screen resolutions, a lot of artificial intelligence and augmented reality – and gaming, in particular cloud gaming, is a big topic for 5G, due to the high speed and the amount of data that can be transferred very fast. What are the other key developments in smartphones? Manufacturers are increasing the active area of the screen and new formats include foldable screens; Samsung, for example, is launching a foldable screen, 5G smartphone at IFA. The foldable market will be challenging, primarily down to the price of the latest devices, but it also has some potential. At the price points that exist right now, it is difficult to achieve large numbers of sales. We are estimating 500,000 this year and we believe it will increase to about 40 million in 2024. 5G will definitely drive smartphone sales 14
NOMADIC LIFESTYLE PART 2 IFA My Media IFA Audio Entertainment IFA IFA Home & Entertainment Electronics THE AGE OF CONNECTIVITY €210bn Consumers spent €210bn on smartphones worldwide in the first half year of 2019. Source: GfK €110.5bn The global mobile phone accessories market is expected to reach €110.5bn by 2025. Source: Future Market Insights 29.8% 172.2 million wearables were shipped in 2018. Smartwatches accounted for 29.8% of all wearables. Source: IDC For the second part of our Nomadic Lifestyle report, we start by reviewing some of the key product innovations unveiled at IFA Berlin 2019 As IFA draws to a close, it’s clear that products catering for today’s on-the-go lifestyle remain priorities for leading players. Across mobiles, wearables and audio, visitors witnessed an array of innovations. Huawei and Qualcomm both introduced powerful chip sets that will support the imminent global rollout of 5G mobile devices. With the latest editions of the Huawei Kirin and Qualcomm Snapdragon chips coming to market, 5G mobile consumers will soon be able to enjoy amazing gaming, video and music experiences on the move. As for the manufacturers themselves, Samsung used IFA to unveil its eagerly awaited Galaxy Fold. With its unique ability to expand to near tablet-like dimensions, the phone is available in a 5G-ready version. Competing for attention with Samsung’s Galaxy Fold at IFA 2019 were the LG V50 ThinQ 5G smartphone, with its 6.4-inch OLED FullVision display; Huawei’s new P30 Pro; TCL’s flex, offering powerful features and Sony’s Xperia 5 mobile phone. Sony also used IFA to introduce the neckband style WI-1000XM2, the latest upgrade to Sony’s 1000X series of wireless headphones. Richard Yu, CEO of Huawei Consumer Business Group, unveiled the company’s new wireless earphones, the Freebuds 3. Elsewhere, Pioneer revealed its S6 Wireless Noise Cancelling Headphone. Also delivering innovations in Nomadic lifestyle are companies such as Belkin, which strive to deliver seamless connectivity to consumers through its range of premium accessories. Fastcharging is a key area for the company, and is in strong demand from consumers who need to charge their devices quickly when leaving home in a hurry. On the wearables front, Garmin came to IFA with three new products. These include the Fenix 6, a multisport GPS watch with the option of the company’s first ever solar power feature, the Vivomove, a fashionable hybrid smartwatch, and GPS smartwatch the Venu. Jitesh Ubrani, senior research analyst for IDC Mobile Device Trackers, adds that “the market f o r earworn wearables has grown substantially this past year and we expect this to continue in the years to come. Added to the rise of smart assistants and inear biometrics, companies have the perfect formula to sell consumers a device that’s complementary to the ecosystem on their wrist and in their pocket” © Messe Berlin GmbH Miss IFA showcases the Pioneer S6 Wireless Noise Cancelling Headphone from Aqipa Gear Guru www.ifa-international.org IFA International • Wednesday 11 September 2019 15
