Average global smartphone prices cross $400 as revenues hit record high

Smartphones are becoming more expensive worldwide, with the average global selling price crossing the $400 mark for the first time in a single quarter, even as consumer demand remains resilient.

In the October–December 2025 quarter, the average price of a smartphone sold globally rose above $400, or roughly Rs 38,000, according to a report by Counterpoint Research. The milestone reflects a shift in consumer buying behaviour towards higher-priced devices that were once considered premium.

The report stated that global smartphone revenues reached $135 billion during the quarter, the highest ever recorded in any three-month period. This marked a 7 per cent increase compared with the same period a year earlier. Smartphone shipments rose by 4 per cent year-on-year, indicating that while volumes grew modestly, spending per device increased at a much faster pace.

Counterpoint Research informed that a greater proportion of buyers opted for more expensive models during year-end sales and the holiday season. The availability of easy financing options and exchange offers also encouraged consumers to spend more. Rising component and manufacturing costs further contributed to higher retail prices.

Apple emerged as the biggest beneficiary of the trend, leading the global smartphone market by revenue with more than half of the total share in the quarter. The company’s smartphone revenue grew 11 per cent year-on-year, driven by strong demand for the iPhone 17 series. Sales were particularly robust in China, North America and Latin America, with the high-end Pro Max variant seeing strong traction and supporting one of Apple’s strongest year-end performances in recent years.

Samsung retained its position as the second-largest brand by smartphone revenue. The company recorded the fastest shipment growth among the top five manufacturers, with volumes rising 17 per cent from a year earlier. This growth was largely led by the Galaxy A series, which continued to perform well in Latin America, Southeast Asia, the Middle East, Africa and parts of Europe. However, the focus on lower-priced models resulted in a decline in Samsung’s average selling price during the quarter.

Chinese smartphone brands delivered mixed results. OPPO reported the fastest revenue growth among the top five brands, supported by stronger sales of higher-end devices and an expanding presence in overseas markets. Vivo posted steady growth, aided by demand in China and India.

Xiaomi faced a weaker quarter, with both shipment volumes and revenue declining. The company was impacted by rising component costs that weighed on its budget smartphone portfolio. Sales fell in key markets such as China and India, and while Xiaomi introduced some higher-priced models, these were insufficient to offset the broader slowdown.

Looking ahead, researchers expect average smartphone prices to continue rising in 2026. Increasing demand for advanced features, particularly AI-driven capabilities, combined with higher component costs, is likely to push prices higher. At the same time, elevated prices could moderate overall shipment growth, prompting manufacturers to focus on selling fewer devices at higher price points rather than pursuing volume-led expansion.