Researchers caution on revenue cut from repair rules - Mobile World Live

Researchers caution on revenue cut from repair rules

16 AUG 2021

Analysts at Juniper Research warned legislation designed to ease the device repair process could blunt shipment revenue for 5G devices in the long-term, but backed devices supporting the technology to record strong sales in the meantime.

In its latest forecast, the company estimated 5G compatible smartphones to generate annual revenue of $337 billion by 2025, compared with $108 billion expected in 2021.

Juniper Research believes 5G smartphone revenue will comprise more than half the global total in 2025.

Although largely positive on the prospects for 5G handsets, Juniper Research warned pending legislation in Europe and North America pushing for manufacturers to improve repair options would likely blunt the market in the long-term.

It added the so-called “right to repair” laws would likely lead to users choosing to repair their older models rather than upgrading.

Research analyst Adam Wears explained the “effect of these laws will not be felt initially, as consumers adopt 5G smartphones to leverage the high speeds and reduced latency” of next-generation networks.

“Hardware vendors must use this opportunity to build out new device capabilities to encourage consumers to continue regularly upgrading and avoid churn to competitors.”

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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