Analysts at Juniper Research warned legislation designed to ease the device repair proces [1]s could blunt shipment revenue for 5G devices in the long-term, but backed devices supporting the technology to record strong sales in the meantime.
In its latest forecast, the company estimated 5G compatible smartphones to generate annual revenue of $337 billion by 2025, compared with $108 billion expected in 2021.
Juniper Research believes 5G smartphone revenue will comprise more than half the global total in 2025.
Although largely positive on the prospects for 5G handsets, Juniper Research warned pending legislation in Europe and North America [2] pushing for manufacturers to improve repair options would likely blunt the market in the long-term.
It added the so-called “right to repair” laws would likely lead to users choosing to repair their older models rather than upgrading.
Research analyst Adam Wears explained the “effect of these laws will not be felt initially, as consumers adopt 5G smartphones to leverage the high speeds and reduced latency” of next-generation networks.
“Hardware vendors must use this opportunity to build out new device capabilities to encourage consumers to continue regularly upgrading and avoid churn to competitors.”
[1] https://www.mobileworldlive.com/featured-content/home-banner/eu-uk-inch-towards-tough-repair-rules-for-devices
[2] https://www.mobileworldlive.com/featured-content/home-banner/biden-net-neutrality
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