Many of the largest smartphone makers have a reputation built almost entirely on their flagship phones. Once a year, companies like Apple Inc. (AAPL) and Samsung Electronics Co. Ltd. roll out the red carpet and introduce their latest and greatest devices.

The phones are packed with new features, ranging from new cameras and bigger screens to faster chips and more memory.

The downside is that these new features add up to a $1,000-price tag.

This has created a major challenge for the burgeoning 5G market. These flagship 5G-capable smartphones on the market are so expensive, it's hard for the average person to afford them.

But in the last few weeks, big changes have happened – changes that could potentially upgrade every future phone. That's 1.5 billion new smartphones every year that could gain access to 5G networks.

This change will also give carriers the ability to continue expanding 5G network coverage as new users come online…

Folks, the Smartphone Landscape Is Changing…

Despite the economic slowdown caused by a worldwide pandemic, momentum around 5G hasn't slowed one bit.

In fact, Samsung sold out of its Galaxy A51 5G phone in one day, and two major semiconductor companies have introduced new 5G chips in the last few weeks.

So, how did this phone sell out so fast?

This is all because of its low price tag of $422.

As I said earlier, one of the biggest challenges to the 5G market is the exorbitant prices people have to pay for a new smartphone. That low price of $422 is less than half the entry-level price of the Samsung Galaxy S20, part of its flagship phone line.

In the last few months, we have really seen the emergence of 5G phones, but these new, lower-priced devices, which make up a large part of the smartphone market, could significantly accelerate the adoption of 5G.

But how did we get here with these lower prices?

This has all been made possible by the likes of Qualcomm Inc. (QCOM), Samsung (SSNLF), and MediaTek Inc., which are now offering lower-priced 5G chips.

MediaTek announced the launch of its Dimensity 820 chip this week, and Qualcomm announced its Snapdragon 768G 5G mobile chip last week.

This is the second lower-cost 5G-capable processor from Qualcomm in the last six months, and it reflects how important 5G adoption really is to semiconductor manufacturers.

Right now, the first phones with the lower-priced Qualcomm's Snapdragon 765 processor are just starting to trickle out, and over the next few months, millions of more people could have 5G phones with these newly announced chips.

While these phones may not be as powerful as their flagship counterparts, they still have access to the same high-speed network.

The Big Takeaway

In the last two months, our lives have been upended as stay-at-home orders have forced millions of people around the world to work from home, attend school virtually, and increase our consumption of digital entertainment.

We have realized through this that one of the most important resources we can have right now is Internet connectivity.

As a result, 5G has thrust itself into the spotlight as a required technology

This technology coming down in price is an important milestone for 5G advancement, and lower-cost components are helping to keep the momentum going in user adoption. These new phones and devices containing 5G technology could create a whole new wave of momentum.