5G Phone Royalties to Net a King's Ransom
BOSTON -- 5G handsets will generate almost $20 billion annually in global royalties for intellectual property (IP) holders in 2025 according to the latest research from Strategy Analytics. Strategy Analytics’ Emerging Device Technologies research concludes that three companies, Ericsson, Nokia and Qualcomm will take the lion’s share of those royalties.
Qualcomm, Ericsson and Nokia will capture over 90% of total 5G smartphone royalties in 2025, according to Strategy Analytics research. Cumulative 5G Royalties will pass $55B.
While the first 5G smartphone launches are still months away, key IPR holders have begun to reveal their licensing rates for the key technologies that will power 5G devices. “Ericsson and Nokia combined will take 35% of total global 5G handset royalties in 2025,” says Senior Analyst Ville-Petteri Ukonaho. “Meanwhile Qualcomm will take over half.” Strategy Analytics research shows that while Ericsson and Nokia hope to charge $5 and $3.50 per device, respectively, Qualcomm will take a percentage of the device’s price.
“The average selling price (ASP) of 5G smartphones will steadily decline over time, but even in 2025, 5G devices will still be three times more expensive than non-5G handsets,” says Emerging Device Technologies Director Ken Hyers.