Analysts forecast that 5G technology will provide a $12 billion boost for mobile commerce over the next 3 years. This is, of course, if the 5G rollout moves ahead at some point. Meanwhile, auto manufacturers and tech firms are collaborating to shape a future where individual auto ownership succumbs to ride-hailing services.
5G technology also promises to deliver a future of self-driving vehicles and create a society in which people work more with their minds than their hands. This development will be a boom for the world’s employers, as workers will have more opportunities to pursue engaging work, resulting in increased employee satisfaction.
Analysts Forecast Big Profits Ahead for 5G Players
The faster the device that happier the consumer. This reasoning holds true, as the difference between site visits on mobile and desktop devices has been diminishing as engineers create mobile devices with faster speeds. Once 5G technology finally comes to market, retailers expect a highly positive consumer response.
An Adobe Digital Insights report called “A Mobile-First World” recently reviewed roughly 1 trillion visits that took place between 2015 and 2017 to over 5,000 websites. In the report, researchers studied smartphone usage patterns of American consumers.
The study found that smartphone retail site visits that originated in the United States grew from 10-percent in 2015 to today’s 30-percent rate. At the same time, desktop site visits have been declining. The report also revealed that mobile speed equates to revenue.
It seems that, for consumers, mobile speed matters. Apparently, even though more consumers are visiting retail sites using their smart devices — their attention spans are shrinking.
Since 2015, smartphone visits have grown 89-percent, compared to the familiar desktop’s decline of 17-percent. Despite this, desktop traffic still encompasses 61-percent of visits — for now. The study revealed, however, that mobile visit time shortened by approximately 10-percent over the same time.
The Promise of 5G Is Fueling Toyota’s and Uber’s Big Joint Push Into the Self-Driving Market
In pursuit of dominating the world’s roadways with driverless vehicles, Toyota is spreading its influence far and near in the form of investments to claim a stake in cutting-edge technologies, such as self-driving vehicles and — indirectly — the underlying 5G network that will serve as the backbone of the innovation. Company officials admit, however, that they have no clear plan as to how they will achieve their goal.
The Toyota Motor Corporation has earmarked $5 million for a joint venture with Uber technologies in a Hail Mary play to catch-up with industrial and technology giants such as General Motors Corporation and the Google subsidiary Alphabet Inc., the developers of Waymo technology. Eventually, Toyota wants to use the resulting tech for its proprietary line of Sienna minivans. The experiment is slated for launch among Uber’s ride-sharing network in the year 2021.
Toyota’s investment represents a company valuation boost to $76 billion for Uber. The nearly decade-old automobile manufacturer Toyota wants to reinvent itself by expanding its offerings to compete in what CEO Akio Toyoda forecasts is a coming life-and-death battle between major auto manufacturers. The firm has also partnered with ride-sharing enterprises Grab of Singapore and DiDi of China. The automaker also backs Japan Taxi, although this enterprise is a direct and highly-successful competitor of Uber.
Toyota is also involved in a joint collaboration with Uber and DiDi to develop modular autonomous driving boxes that can transport anything from consumers to food. The innovative concept called e-Pallet was unveiled in January 2018 at the International Consumer Electronics Show (CES) in Las Vegas. With this latest initiative, Toyota has joined in league with the dominant Japanese Internet firm Softbank Group Corporation, which also — incidentally — has invested in initiatives with Uber, DiDi and Grab.
In the Interim, It’s Not All Roses for All Telecomms
Despite the promise of improved 5G technology, major telecom manufacturer Nokia recently posted dismal quarterly profits. The firm did, however, enjoy exceptional success during the height of its 4G device sales in 2015.
Company officials, at one point, announced that they would roll out 5G devices toward the end of 2018, but have yet to release any device of this nature as of October of that year. Regardless, the manufacturer plans to bolster its sales efforts shortly after the technology does eventually roll out. Meanwhile, analysts forecast that Nokia’s worst days are behind them.
Moving forward, predict analysts, the tech giant should start to show profits in lieu of the launch of its 5G line. Today, the firm’s operating profit is $436 million, a 35-percent drop from the previous year, and for now, the firm continues to plod along steadily with their declining cash flow while it struggles to boost profits with its current 4G device offerings.
Analysts note that many enterprises will show negative financial returns as they sink money into 5G investments while waiting for the eventual launch of the platform and its ensuing returns. Meanwhile, Nokia has experienced a steady drop from 8.6 to 4.5 billion euros in its enterprise networking sales, which comprise 90-percent of the firm’s revenue.
The U.S. trading ban on Chinese telecom manufacturer ZTE Corp. may help to produce a revenue influx for vendors in the 4G networking market, further suggest analysts. Even though this ban is no longer in place, networking buyers are practicing caution with the firm.
Enterprises are hesitant to invest in ZTE while they’re unsure of the company’s ability to deliver goods. Meanwhile, Nokia continues to survive on residual profits derived in the company’s heyday, when the firm registered patents which resulted in phenomenal success, making them the world’s leading handset maker at the time. Regardless, it’s clear that mobile-driven, super-powered 5G technology will develop renewed value for Nokia and other technology vendors in the coming marketplace.