5G Demand Signals 'Solid 2021' for Tech: S&P
Strong demand including for 5G points to a “solid 2021,” S&P reported Friday. U.S. tech firms in Q4 delivered “strong beats and guides” for future quarters amid a “smart" 5G smartphone cycle, and increasing fifth-generation wireless network deployments will add…
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to the growth, the firm forecast. Enterprise IT spending remains weak, however. Increasing confidence in an economic recovery will likely result in higher spending as the year goes on, said the report. Apple's fifth-gen rollout was a “great success” in Q4 and will support a 2021 upgrade cycle that Samsung will also benefit from, said S&P. The next-gen mobile phone cycle will be “very good for suppliers since 5G phones have higher silicon content.” Network upgrades are accelerating, too, to support wider adoption of 5G phones, with Japan and Korea furthest ahead, followed by China, the U.S. and Europe. Ericsson should pick up market share from Huawei, particularly in Europe, it said.