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At Mobile World Congress Barcelona uCloudlink (NASDAQ:UCL) unveiled its new HyperConn technology, an improved solution to its current service, as well as: GlocalMe Numen (MSRP $599), its first 5G mobile Wi-Fi device, and its GlocalMe Genie, a 4G pad device (unpriced). The first edition of Numen will be available in Europe and Asia on July 15, with future release dates to be announced later. UCloudlink will release Genie in Q4 2021. They both will be released in other geographies but the timing or locations were not announced.
The Numen specs are: sub-6 bnd, 5G NSA/SA\2.4 GhZ 5GhZ, Wi-Fi 6 certified, MU-MIMO, and it uses a 3900mAh battery, has an extra Nano SIM card slot and has a Type C connectivity port. The device is in the same form factor as its 4G G4Pro and is shown below:
We have high expectations for new 5G hotspots and service as finding a 5G connection will be a much bigger feat than finding a 4G especially roaming due to spotty availability. By adding 5G mobile to the mix, these connections will often surpass fixed broadband Wi-Fi speeds and the ability to optimize and switch connections will be even more valuable.
The $599 price point may result in sales to only those requiring 5G speeds such as in edge computing applications used by enterprise customers. This price is considerably higher than its current highest priced products at $169.99. This could dampen sales to consumers resulting in much lower initial volumes, despite resulting in higher gross margins. We expect that the price may decline in the future with volume sales and competition. As the first 5G device on the market to be used with multiple networks, uCloudlink has no price competition except from walled devices restricted to one network. For example an Inseego 5G MiFi M2000 can be bought in the US directly from T-Mobile for use on its network for $336. It cannot be used on other networks.
The Genie, which is to appear for sale in Q4, has not yet been priced. It is a 4G pad device as shown below.
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