Market Overview

Strategy Analytics: 5G Phone Royalty Payments to Generate $20 Billion in 2025


Three Key Companies Will Capture Over 90% of 5G Royalties

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' Emerging
Device Technologies
research concludes that three companies,
Ericsson, Nokia and Qualcomm will take the lion's share of those

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
. "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

The findings of this research are in line with royalty data for earlier
generations of smartphones. "Based on this analysis," says Ville-Petteri
Ukonaho, "total 5G IP royalties will account for approximately 7% of
the total wholesale price of a 5G smartphone
, which is in line with
previous 4G IP costs." The share of royalties going to the three key 5G
IP companies indicates both different approaches to licensing and their
relative share of 5G IP.

About Strategy Analytics
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consulting and actionable market intelligence for emerging technology,
mobile and wireless, digital consumer and automotive electronics
companies. With offices in North America, Europe and Asia, Strategy
Analytics delivers insights for enterprise success.

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