Apple Inc. has decided to release its new iPhone 12 lineup of smartphones, the company's first handsets to support the 5G high-speed 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 5G smartphones.
-- Rolling out 4 models
"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 Tuesday.
Wtih 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, yen before tax, compared to 85,800 yen 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 started selling such phones on Thursday.
-- Lowering prices
As competition proceeds among the key makers, they are likely to lower prices, which will help widen 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.
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 in spring next year a new model that will retail for 30,000 yen to 50,000 yen. Sony is also scheduled to release a new 5G-capable Xperia model on Saturday.
However, it remains to be seen whether 5G will fully spread, 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."
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