Average price of smartphones rises above $400 for the first time
Figures from Counterpoint Research illustrate the booming market for high-end smartphones. Customers are increasingly opting for premium models, driving up the average selling price (ASP) by 3% compared to the previous year. However, the price increase isn't solely due to the desire for luxury. Hardware costs, such as those for memory chips, have also risen significantly.
According to Counterpoint Research's analysis, Apple came first in 2025. The American company dominated the market almost at will, securing a 57% share in the fourth quarter of 2025. The iPhone 16 and iPhone 17, along with strong demand in China and the US, fueled Apple's revenue growth of 11% to $76 billion. The expensive Pro Max model in particular sold extremely well.
Samsung saw the strongest growth in unit sales (up 17%), but lost ground in terms of average price. Because the South Koreans focused heavily on the affordable Galaxy A series during the Christmas season, the ASP fell by 20%. Nevertheless, sales rose by 12%, thanks in part to the new Galaxy S25 models and the foldable Z Fold7.
The situation is less rosy for Xiaomi. Revenue and unit sales fell by around 10%. The company is suffering massively from the high prices of components such as DRAM and NAND, which are eroding profit margins on its budget models. In contrast, Oppo scored well in the high-end segment. Thanks to its Reno 14 series and new models in the Find line, Oppo's revenue grew by a substantial 23%.
Everything points to even higher prices in 2026. Manufacturers' hunger for AI features and expensive RAM are likely to make buying a smartphone even more expensive in the future. According to experts at Counterpoint, those who can't keep up with the rising prices will soon face serious problems.
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