With the 5G race heating up, it’s important to understand how these three tech giants are competing and what they bring to the table.
The nokia 5g vs huawei 5g is a question that has been asked for years. There are many different opinions, but the truth is that nobody knows who will win the 5G race.
5G, which was once only a gleam in the minds of CEOs from Shenzhen to Silicon Valley, now controls a large portion of the global supply chain, and the battle for dominance is heating up.
Equipment manufacturers, smartphone manufacturers, and chip designers are all competing for control of machines and services that utilize the fifth-generation wireless standard, which is becoming more widely available in Asia, Europe, and North America. 5G technology has grown from a rounding error to a multibillion-dollar industry for several tech firms since it began as a set of blueprints made by engineers and government policymakers.
5G, like previous technical improvements, has helped rearrange the worldwide pecking order in the smartphone and cell-tower equipment industries. Government leaders from Tokyo to Washington, on the other hand, are a crucial element of the global rivalry, eager to promote their 5G businesses for economic and geopolitical reasons. Their subsidies and requirements originate from a concern that whichever nation leads the 5G economy would enjoy the benefits for decades.
LET US KNOW WHAT YOU’RE CONCERNED ABOUT.
What measures do you believe the government should implement to encourage 5G adoption and assist 5G equipment manufacturers in the United States? Participate in the discussion below.
All of this begs the question: who will come out on top? Which equipment manufacturers are leading the pack, and which are gaining or losing ground? In these early days of 5G rollout, which mobile firms have stood out? In terms of 5G availability, which nations are leading the way? A scorecard, a snapshot in time of some of the most competitive 5G races, is provided below.
As the world’s communications carriers build out their 5G networks, the big telecom-equipment vendors’ long-held market positions are changing.
Huawei Technologies Co., based in China, continues to dominate the $90 billion annual telecommunications equipment industry, as it has for many years. Others, on the other hand, are gaining momentum as Huawei confronts limitations from governments all over the globe as a result of Washington’s effort to strangle Huawei’s equipment sales due to cybersecurity concerns.
According to the research company Dell’Oro Group, Huawei will have a 30 percent market share by the end of 2020. Huawei’s market share fell to 28.8% in the first half of this year.
Among telecom-equipment manufacturers, Ericsson and Samsung are on the rise.
Giacomo Bagnara’s illustration
Ericsson AB of Sweden raised its market share to 15% in the first half of this year, up from 14.7 percent last year, placing it in second position, while Nokia Corp. of Finland fell to third place, with a share of 14.9 percent, down from 15.4 percent. Since 2018, Ericsson and Nokia have been moving in different ways.
Analysts point out that Samsung Electronics Co. of South Korea increased its stake to 3.2 percent in the first half, up from 2.4 percent last year and more than double the company’s 1.5 percent share in 2017.
“We believe that both Ericsson and Samsung are gaining market right now outside of China,” says Stefan Pongratz, an analyst at Dell’Oro Group.
Ericsson has achieved a number of 5G wins, but none more significant than the five-year, $8.3 billion contract it secured with Verizon Communications Inc. in July. Ericsson will provide Verizon with 5G radio equipment and software, including massive multiple-input multiple-output (MMIMO), a relatively new cellular-antenna technology in which Ericsson has invested significantly. The firm updated its Massive MIMO product line in late September with a smaller unit—at 26 pounds, it’s roughly 40% lighter than the previous generation—which the company claims would make 5G deployment simpler for carriers.
However, the business is facing challenges, especially in China. As a consequence of Swedish authorities’ decision last year to prohibit Huawei from the Scandinavian country’s 5G wireless networks, Ericsson has warned that it may lose market share in China. Officials in China have vowed retaliation.
Market share of telecommunications equipment manufacturers worldwide
Nokia, on the other hand, is recovering from a self-admitted blunder of investing on the incorrect technology. To power the technology it was selling to carriers building out 5G networks, the firm invested in an expensive processor called field-programmable gate array chips, or FPGA, a few years ago. The carriers, on the other hand, chose a less expensive, less energy-intensive technology provided by Nokia’s competitors known as system-on-chip, or SoC, which is more power-efficient and less expensive to manufacture.
According to Tommi Uitto, the president of Nokia’s wireless-equipment division, the company has now embraced SoC technology and has undertaken a reorganization over the last couple of years. It has slimmed down its product range and cut expenses. In March, the firm said that it will eliminate between 5,000 and 10,000 positions over the next two years, citing the need to reduce costs and better compete in the 5G equipment market as one of its most recent actions. It said that the savings will be used to offset increased research and development spending, among other things.
Patrick Filkins, research manager for the internet of things and telecom network infrastructure at International Data Corp., or IDC, says, “They’ve done a lot of effort in the last 18 months to reverse course.”
Analysts agree, however, that Samsung is a business to watch. The South Korean firm distinguishes itself by offering a wide variety of 5G-related goods, including smartphones, base stations, and processors. According to Mr. Filkins, the company’s range of goods provides it a small edge in that it can thoroughly test and improve its items before putting them on the market.
Samsung and Verizon agreed to a $6.65 billion deal for network equipment and services in 2020, including both 5G and 4G infrastructure. The firm has previously won 5G agreements across the globe, but none of that magnitude.
Mr. Filkins of IDC adds, “That’s a game changer for them.”
Other significant agreements have subsequently been struck by the business. NTT Docomo Inc. of Japan agreed to purchase Samsung network equipment in March. In June, Vodafone PLC, a British telecommunications firm, agreed to utilize the provider’s 5G equipment. The details of the agreements were not disclosed.
Huawei is losing ground in the smartphone market as it deals with a worldwide semiconductor scarcity as well as US restrictions that prevent it from accessing 5G technologies. Dan Strumpf of the Wall Street Journal discusses what has led to Huawei’s present problems. Getty Images/AFP/AFP/AFP/AFP/AFP/AFP/AFP/AFP/AFP/AFP
Samsung, along with Ericsson and Nokia, Mr. Filkins believes, is well positioned to develop its 5G operations. “That has as much to do with Huawei’s difficulties in some regions as it does with technology,” he adds. “I believe it will help all of them.”
Because policymakers are concerned about the dominance of Chinese vendors such as Huawei and ZTE Corp. ZTCOY 2.06 percent, the US is also attempting to open the door for new 5G equipment suppliers. The United States has attempted to promote an alternative by pushing Open RAN, a new open-standards-based technology that offers lower-cost equipment and more flexibility.
Despite their promises, such suppliers only have a small part of the 5G equipment market, according to Mr. Pongratz of Dell’Oro Group.
Apple has a significant lead in the 5G smartphone market, but the competition is expected to intensify.
Giacomo Bagnara’s illustration
Apple Inc. AAPL -0.06% has gained an early lead in the 5G smartphone race, but experts warn keeping it may be difficult in such a crowded market.
Apple was months behind competitors like Samsung Electronics when it unveiled its first 5G-capable devices amid much fanfare a year ago. Apple, on the other hand, had seized the lead by the time the iPhone 13 was released last month. According to IDC, it has 28.3 percent of the 5G phone market by shipments in the first half of this year. Guangdong Oppo Mobile Telecommunications Corp. of China came in second with 14.4 percent of the market, slightly ahead of Samsung (13.9 percent) and Vivo Mobile Communication Co. of China (13.5 percent). Xiaomi 1810 -2.54 percent came in second with 11.2 percent.
According to Runar Bjrhovde, a research analyst at Canalys, Apple has “totally grabbed the 5G globe by storm.” Apple’s success in the 5G market, he claims, is due in part to the company’s launch of many distinct models, as well as the fact that all iPhones 12th generation and beyond are built with 5G technology, leaving customers with no option but to purchase a 5G iPhone.
The introduction of 5G-capable iPhones has also sparked a surge in the overall market for 5G phones. When the iPhone 12 was released, just around 18 percent of all handsets on the market were 5G ready. Within three months, 5G handsets had accounted for 32% of overall phone shipments. According to IDC, the market for 5G devices will increase from $161.4 billion last year to $361.8 billion this year, and will reach $454.7 billion by 2025.
Share of the global 5G smartphone market held by the company
According to IDC research director Nabila Popal, Apple faces an uphill fight to maintain its early success in the 5G sector. Nearly 70% of Apple’s total phone shipments are already 5G devices, while just 26% of Samsung shipments and 30% of Xiaomi shipments are 5G, allowing the Asian competitors greater opportunity to expand. Mr. Bjrhovde believes that when additional low-cost 5G phones hit the market, Apple’s position would be weakened.
The industry is scaling up production of 5G devices. In its most recent earnings call, Qualcomm Inc. QCOM -1.27 percent stated that increasing acceptance of the technology may push 5G phone sales to the high end of its 450 million to 550 million estimate for this year.
The increasing availability of 5G networks is helping to fuel demand. By the end of the year, Apple expects 5G networks to be available from more than 200 operators in 60 countries and regions across the globe.
China is the global leader in the deployment of 5G base stations.
Giacomo Bagnara’s illustration
When it comes to which nation is benefiting the most from 5G, China continues to lead, despite progress by the United States and several of China’s Asian neighbors.
China’s advantage comes from its early adoption of 5G networks. China’s Ministry of Industry and Information Technology said in July that the nation has deployed 961,000 5G base stations, the most of any country to date. According to Bill Rojas, an analyst at IDC, that’s roughly one base station for every 1,500 people, which is a significant number for a nation as large as China.
The sheer availability of 5G, along with significant government incentives for all things 5G, has paved the way for the development of 5G apps, which are next-generation technologies that take use of ultrafast 5G connectivity.
5G-supported mining is a recent development in China, in which autonomous robots powered by 5G networks go deep into coal mines and other hazardous places in lieu of people. China Mobile 941 -0.62 percent, a state-owned telecom operator, unveiled China’s first 5G coal mine in June last year, at a 1,752-foot-deep mining location in Shanxi province’s coal region. According to the business, the mine’s 5G capabilities, which were jointly developed by China Mobile and Huawei Technologies, enable for applications such as automated coal mining and remote inspection. Huawei has said that it intends to extend 5G mining to all of China’s mines.
“By helping this sector, we can expand our company and promote more efficient and safer mining production,” Huawei CEO Ren Zhengfei stated earlier this year at a press conference in Shanxi. “We can also allow coal mine employees to dress up for work by allowing them to wear suits and ties.”
According to Handel Jones, CEO of consultancy company International Business Strategies Inc., other 5G applications that China is encouraging include remote medical applications such as MRIs and operations, as well as autonomous transportation of people and commodities.
“Building demand for new technology is a fundamental feature of China’s government and industry,” Mr. Jones adds. “The assistance for developing a market base for new technologies is a major reason why China is advancing ahead of the United States in many areas of new technology development, including 5G and perhaps AI.”
To be honest, many of these apps aren’t widely used yet, whether in China or elsewhere. That’s because, in order to function, they generally need ultra-reliable, low-latency 5G networks, which aren’t currently widely accessible. China, on the other hand, is making progress in making them accessible.
In terms of 5G rollout, the United States is trailing behind China, but not by much. Mr. Jones believes that by the middle of this year, the United States had deployed 100,000 5G base stations. With its lower population, it works out to around one base station per 3,300 people.
When it comes to 5G applications, the United States has chosen the predictable route of entrusting the heavy work to the private sector. Many businesses have created technologies that are comparable to those being explored in China.
Some carriers’ lack of access to the radio frequencies most suited for 5G coverage is one barrier to their broader adoption and a larger variety of 5G applications. The US Federal Communications Commission just started freeing up a large block of “midband” spectrum last year, a precious piece of digital real estate that carriers have been clamoring for for their 5G networks. The additional airwaves are expected to be used by carriers later this year.
“In the United States, the issue has been that carriers haven’t had access to additional spectrum,” says Ian Fogg, vice president of analysis at Opensignal, a mobile-industry research company.
Other nations are also experimenting with 5G applications, but they are still in their early stages in some instances.
Visitors take a tour of a 5G-enabled coal mine in Shanxi Province, China.
Qilai Shen/Bloomberg News photo
Japan, for example, has been slow to install 5G, which has hampered the development of 5G applications. For the Tokyo Olympics, the government developed several 5G applications, including the use of drones to record sports like sailing and golf up close and broadcast the signals to spectators through 5G networks. In Japan, 5G was made commercially available in March 2020. Other nations, such as the United States and South Korea, had already started to install 5G by that time.
The Japanese government is now attempting to catch up and encourage 5G development by providing tax breaks to businesses who construct private 5G networks for use in applications such as smart factories and farms. For 5G-related investments, they may select between a 15% tax reduction and a 30% special depreciation.
South Korea, which has some of the fastest 5G networks in the world and was one of the first to install them, is also supporting new 5G applications. The Ministry of Science and ICT said in July that it will invest 49 trillion won ($41 billion) over the next four years to assist build specialized 5G networks to accommodate new applications such as smart factories.
Mr. McCormick is the deputy editor of the Wall Street Journal’s Pro Artificial Intelligence section in New York. [email protected] is his email address. Mr. Strumpf and Ms. Bobrowsky work for the Wall Street Journal in San Francisco and Hong Kong, respectively. [email protected] and [email protected] are their email addresses. This story was co-written by Drew FitzGerald in Washington, D.C., and Megumi Fujikawa in Tokyo.
Dow Jones & Company, Inc. All Rights Reserved. Copyright 2021 Dow Jones & Company, Inc. 87990cbe856818d5eddac44c7b1cdeb8
The ericsson vs huawei is a debate that has been going on for years. Huawei, Ericsson, and Nokia are all competing in the 5G race.
- 5g contracts ericsson nokia huawei
- nokia vs huawei
- nokia ericsson 2021
- what is huawei 5g
- does china have 5g