February 26, 2019
Next-generation 5G mobile wireless network technology may be more hype than reality at the moment. But consumer awareness of the fifth-generation wireless technology successor has reached mainstream, according to new data from The NPD Group.
According to the latest NPD Connected Intelligence, 5G awareness among consumers reached 64% at the end of the second half of 2018. That represented a 20% gain from 44% at the end of the first half of 2018.
The report – based consumer panel research of 3,600 U.S. cellphone users completed in February – found 33% of smartphone owners interested in purchasing a 5G-enabled smartphone once available.
Millennials reported have the highest potential (49%) to make the move to 5G, while consumers on unlimited data plans, who NPD says value downloading and streaming video content, are slightly less eager (43%) to purchase a 5G-enabled smartphone.
Verizon late last year launched limited 5G network rollouts in Houston, Sacramento, Los Angeles and Indianapolis, while AT&T bowed service in 12 cities, including Atlanta, Charlotte, N.C., Dallas, Houston, Indianapolis, Jacksonville, Fla., Louisville, Ky., Oklahoma City, New Orleans, Raleigh, N.C., San Antonio and Waco, Texas.
“In the last several days, we’ve seen the first 5G-enabled smartphone announcements and as expected, the devices are coming with a premium price tag, due to economies of scale, and a slightly larger form factor, given the hardware needs, than what consumers have become accustom to,” Brad Akyuz, executive director, industry analyst, NPD Connected Intelligence, said in a statement. “While consumer sentiment is positive, cost, form factor, and availability of 5G services will ultimately determine whether consumers will upgrade to 5G-enabled smartphones to enjoy much faster connection speeds.”