We have never spent so much on average to buy a smartphone. According to Counterpoint, the average selling price has reached $356 in 2024, an unprecedented level. Better still (for manufacturers, that is), smartphone shipments have also increased, by 4% — after two years of decline. The industry's turnover is also increasing, by 5%.
A move upmarket that boosts revenues
There will of course always be entry-level smartphones, but manufacturers are betting more on premium models that allow them to generate more margin. Consumers are clearly ready to pay more to get better equipped smartphones. The lesson will certainly be well assimilated by the industry, which needs to integrate more powerful components to accommodate the needs of generative AI.
For this year, smartphone shipments should continue to progress, although limited to single-digit growth. The average selling price and turnover of manufacturers will also increase, more significantly than deliveries, argues Counterpoint.
Despite a 3% drop in its deliveries compared to 2023, Apple records by far the highest average selling price ($903, a new record!) thanks in particular to the performance of the Pro models. “Apple continues to expand its presence in emerging markets, where a growing middle class is driving demand,” said CEO Jeff Fieldhack. Shipments in Latin America soared 44%, helped by deep discounts on older iPhone models.
A testament to Apple’s market power, the American manufacturer took 46% of total industry revenue last year, ahead of Samsung (15%), Oppo and Xiaomi (6% each). Vivo came in last, with 5%.
Unsurprisingly, Samsung held the lead in shipments, despite a very slight decline. The average selling price rose to $299, which is still below the global average ($356, remember). The Korean manufacturer’s revenue is also up. Vivo is the one that benefits from the strongest growth in its revenues (+20%); the brand also wins the jackpot for deliveries in China and India.
Source: Counterpoint
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