The Japan News by The Yomiuri Shimbun
5G competition heating up as stream of new handsets appear
Apple Inc. has launched its new iPhone 12 l i neup of s m ar t - phones, the company’s first handsets to support the 5G highspeed wireless communication standard. In doing so, it is following in the footsteps of such businesses as Samsung Electronics Co. of South Korea and Huawei Technologies Co. of China.
Apple’s entry is sure to intensify the competition, but there are challenges to be faced, such as the limited reception area of the 5G service.
“Today we bring 5G to iPhone. This is a huge moment for all of us, and we are very excited,” said Apple CEO Tim Cook. He described the benefits of 5G, including high-quality video, in an online presentation on Oct. 13.
With 5G technology, smartphone users can download a two-hour movie in three seconds, compared to five minutes with the current 4G.
Apple is rolling out four 5G-enabled iPhones. The type that has attracted the most attention is not the mainstay 12, but the 12 mini. The screen size of the 12 mini is 5.4 inches, smaller than the 6.1 inches of the 12.
Apple has emphasized the handiness of the 12 mini, calling it the smallest, thinnest and lightest 5G smartphone in the world. Prices for the 12 mini start at ¥ 74,800, before tax, compared to ¥85,800 for the 12.
Samsung Electronics and Huawei Technologies, the market leaders in 5G smartphones, were ahead of Apple in launching their products beginning last year. Google also launched 5G phones this month.
As competition proceeds among the key makers, they are likely to lower prices, which will help widen the use of the products. U.S. research firm IDC estimates that shipments of 5G smartphones will continue to increase, and surpass those of 4G phones by 2024.
IDC analyst Nabila Popal said prices for 5G smartphones are dropping rapidly and more consumers will choose them. Popal added that the launch of 5G phones by Apple, which has a large customer base, will have a signifiant impact on the market.
The main players in the Japanese market will probably be Sony Corp., Sharp Corp. and the four companies of the U.S., China and South Korea.
Sharp released a new 5G- capable Aquos model this spring and plans to launch a new model that will retail for ¥30,000 to ¥50,000 next year.
However, it remains to be seen whether 5G will take off, because of the limited areas where 5G is available and the fact that no innovative services using 5G have emerged. The economic downturn caused by the spread of the novel coronavirus is also thought to have made many consumers hesitant to buy a new smartphone.
Hideaki Yokota of MM Research Institute Ltd. said, “Expansion of the coverage area is essential for the spread of 5G smartphones.”
NTT Docomo Inc. and two other Japanese mobile phone companies launched 5G next- generation mobile communications technology in late March, with Rakuten Inc. following suit at the end of September.
However, the service is available only in some sections of major cities such as Tokyo, Osaka and Nagoya. For example, NTT Docomo’s 5G service works in the vicinity of Tokyo and Shinjuku stations, but not around Shinagawa and Yokohama stations. The technology requires four times as many base stations as 4G. In response, mobile phone companies are quickly building base stations that are essential for the spread of 5G handsets.
NTT Docomo had only 500 5G base stations as of the end of March, but plans to boost that number to 20,000 by the end of fiscal 2021. The company eyes increasing the number of customers from approximately 300,000 as of the end of August to 20 million in fiscal 2023.
Both KDDI Corp. and Softbank Corp. have announced plans to build 50,000 base stations by the end of fiscal 2021.