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5G will struggle until it’s affordable for all
July 22, 2025
Wireless carriersmay not be charging muchfor 5G service yet, but that doesn’t mean just anyone can adopt the latest in mobile broadband technology. Beyond the question of coverage from the four major carriers is that of device pricing. In order to upgrade to 5G, consumers need to first shell out some big bucks for a compatible phone. In other words, 5G will remain a luxury for the well-off until prices come down.
Just how much does 5G cost right now? Here’s a breakdown.
Cha-ching!
Phones that support the 5G networks ofAT&T,Sprint,T-Mobile, andVerizon Wirelessrange in price from the moderately affordable figure of $600 to the outlandish sum of $1,299.
AT&T, T-Mobile, and Verizon Wireless all sell theGalaxy Note 10 Plus 5Gat the $1,299 price point. This is AT&T’s only fifth-gen phone for consumers at the moment.
T-Mobile also offers theOnePlus 7T Pro 5G McClarenfor $899, while Verizon also offers the LG V50 ThinQ 5G for $999, theGalaxy S10 Plus 5Gfor $1,299, and theMotorola Moto Z4with 5G Moto Mod for a combined $848.
Sprint stands on its own a bit with the $840OnePlus 7 Pro 5Gand the $600LG V50 ThinQ 5G.
These full retail prices aren’t exactly what U.S. consumers will pay. Monthly costs range from $15 to almost $50, depending on the phone and carrier. Either way, the average 5G smartphone price in the U.S. is about $1,000.
The average 5G plan price is $80 per month before taxes, fees, and device payments. These are not cheap options.
Most consumers aren’t spending $1,000 on phones
Very few Americans drop big money on smartphones. In fact, fewer than 10% spend more than $1,000 on a device, according toNPD Reports. The research firm claims people living in Los Angeles and New York City are most likely to fork over some coin for a top-tier iPhone or Android, though the reasons aren’t entirely clear. Moreover, the buying public has slowed the upgrade cycle significantly.
“Consumers are holding onto their smartphones for longer periods, which has presented a challenge for the smartphone market,” said NPD’s Brad Akyuz. “Manufacturers and carriers are expecting 5G to help reinvigorate the upgrade cycle, but pricing could present another hurdle.” Pricing. You don’t say.
How will this all change? When will we get to affordable 5G?
The 5G chips are down
Affordable 5G will start with affordable chips. Both Qualcomm and MediaTek have unveiled systems-on-a-chip that include upper mid-range processing capabilities with lower-cost 5G modems. From Qualcomm that means theSnapdragon 765, and from MediaTek that means theDimensity 800. These are the chips that will wind up in phones that cost between $500 and $700 — still not “cheap” per se, but much more affordable than the current $1,000 average.
Phone makers are down with it. HMD Global, for example, plans to debut a 5G handset that it expectswill cost halfthat of today’s 5G crop. Motorola has made similar rumblings. It would be great to see commitments to affordable 5G from Samsung, LG, OnePlus, and others.
The carriers, too, will need to do their part. While it goes without saying that AT&T, et al., will want to recoup the many billions of dollars they’ve spent making 5G a reality, the truth of the matter is that the carriers will have to make do with a volume play rather than a pricing play.
Until we have $500 phones and $45 plans, 5G will remain out of reach for many. Basically, the carriers have built the Autobahn, but are only allowing Porsches to drive on it. We need to get some V
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