(Yicai Global) Dec. 13 -- China will produce over half of the world's fifth-generation mobile phones next year as the price sinks to as low as CNY1,500 (USD213) per handset, spurring global sales past 200 million, according to research firm Strategy Analytics.

"China's 5G phone shipments make up a small portion of the world's total due to high phone prices and limited 5G network coverage, but they will grow explosively next year," Linda Sui, Strategy Analytics' director of global smartphone strategies, told Yicai Global.

World shipments of 5G-enabled smartphones jumped to 4.3 million in the third quarter of this year from 1.8 million in the prior three months. Chinese producers such as Xiaomi, Huawei Technologies and Vivo Communications Technology shipped 700,000 in both those quarters, representing a mere 17 percent of the global total.

South Korea's Samsung Electronics accounted for three-quarters of sales, while compatriot LG Electronics and Vivo ranked second and third with 10 percent and 9 percent, respectively, Strategy Analytics found. 

As 5G mobiles gain in popularity, the average price has dropped from USD1,153 in the second quarter to USD994 in the third. "The price of 5G terminals will plunge next year, with the lowest hitting CNY1,500," Sui said.

The minimum price of the Redmi K30 5G phone Xiaomi released this week is CNY1,999. It is the world's first 5G product equipped with Qualcomm's Snapdragon 765G chip.

Global shipments of 5G smartphones will reach 13.5 million units this year and 253 million next year in a nearly 20-fold rise, a recent study by information service provider IHS Markit projected.

Editor: Ben Armour