5G is here as Galaxy S10, Mate X and other phones debut. But it'll cost you

Huawei and Xiaomi have set prices at opposite extremes, while Samsung's being cagey. Now let's see which way the needle really swings.

The Huawei Mate X will cost 2,300 euros ($2,600) when it goes on sale mid-year

When Huawei and Xiaomi showed off their first 5G phones at Mobile World Congress, the crowds at both press conferences gasped. What caused the reaction was the price -- but for very different reasons.

Huawei said its Mate X will cost a jaw-dropping 2,300 euros ($2,600) when it goes on sale in the middle of the year. That's pricier than feared, even though it's one of the world's first foldable phones. By contrast, Xiaomi said its Mi Mix 3 5G will retail for 599 euros ($679) when it hits the market in May, much lower than what seemed possible for the first 5G phones.

The devices may end up being on extreme ends of the pricing scale, but there's really no way to know right now. While nearly every major Android handset maker has unveiled plans to release a 5G phone, Huawei and Xiaomi are the only companies that have actually detailed how much they're going to cost.  

But we do know this much: 5G won't be cheap. The networking technology has long been hailed as a game-changer that will serve as a foundation for everything from telemedicine to self-driving cars to augmented reality. Carriers are spending billions of dollars to build out 5G networks. Device makers need to use pricier components like 5G radios and bigger batteries. Those higher costs will likely flow down to you through more expensive service and phones.

The shift to 5G gives carriers and phone makers the chance to charge more for those top speeds at a time they're not selling as many devices. Last year, smartphone shipments fell for the first time ever in history, according to Strategy Analytics. Globally, they dropped 5 percent to 376 million units, something the research firm called "a landmark event."
The trick is to figure out how much more to charge without scaring consumers off.
"I do believe it should be priced at a small premium to 4G," said Marc Allera, chief executve of UK carrier EE, during a 5G panel at MWC. "But not so much that it slows adoption down."

The first 5G wave

5G promises to significantly boost the speed, coverage and responsiveness of wireless networks. It can run between 10 and 100 times faster than your typical cellular connection today, and even quicker than anything you can get with a physical fiber-optic cable going into your house.
MWC this week in Barcelona marked the debut of the first crop of 5G smartphones. The faster network -- OK, foldables too -- was all anyone talked about at the mobile trade show. Except for Apple, every major handset maker plans to launch a 5G phone early this year.

Samsung, the world's biggest smartphone vendor, unveiled its first 5G phone just days before MWC during its Unpacked event in San Francisco. Oppo on Saturday at MWC talked up its first, not-yet-named 5G phone. Huawei showed off its Mate X foldable on Sunday, while Xiaomi detailed its Mi Mix 3 5G that same day. The Barcelona gathering also marked the debut of LG's V50 and ZTE's Axon 10 Pro, while Sony and OnePlus showed off prototypes for devices they'll launch this year.