Qualcomm Inc expects global smartphone makers to ship 450 million 5G handsets in 2021 and another 750 million in 2022, the world's largest supplier of mobile phone chips said on Tuesday.
Qualcomm said 5G adoption will be faster than 4G due to the timing of commercialization of the technology in China and availability of chipsets across different price tiers.
Going by Qualcomm's previous forecast of a range between 175 million and 225 million 5G devices for next year, the 2021 forecast suggests 125% growth from the midpoint of the 2020 outlook.
Analysts attach importance to occasional smartphone estimate figures from Qualcomm, given its close relationship with phone makers.
Verizon Communications Inc , in a presentation to analysts after markets close, said it expects revenue from 5G growth opportunities to increase next year and anticipates launching 5G in more than 30 cities by the end of this year.
Next-generation 5G smartphones are expected to make tasks like watching videos or playing games on mobile networks as good as or better than on a Wi-Fi connection.
Qualcomm and its rivals stand to benefit from faster 5G adoption because the phones will require more chips to gain the speed boost.