2023 was not a good year for smartphone makers. Since 2020, the market has seen a decline in smartphone sales year-on-year. According to a recent report from market research agency TechInsights, the ASP or Average Selling Price of smartphones has been increasing in the last couple of years.
The ASP is calculated by dividing the total revenue generated from smartphone sales by the total number of smartphones sold during that period. It provides insight into consumer purchasing trends, market competitiveness, and the overall health of the smartphone industry.
South Korea is ranking on top in terms of the Average Selling Price of smartphones
The TechInsights report reveals the top four countries in terms of the average selling price of smartphones. Surprisingly, the US isn’t the first or even in the second position in terms of the average selling price of smartphones. While the US ranks third, South Korea and Japan rank first and second respectively in terms of the ASP of smartphones. The fourth position is occupied by the UK. The report also shows estimates of ASP until 2029 which reveals that it will continue to rise, albeit with a relatively slower pace.
Reportedly, one of the biggest reasons behind South Korea ranking on top in terms of the average selling price of smartphones is Samsung, or more precisely, its Z series book-style foldable. It sounds reasonable as the book-style foldables are not only expensive, but they have also improved quite a bit in the past few generations in almost every aspect, so much so, that there is barely a durability concern at this point. The country has been ranking at the top since 2021.
Before that, Japan used to rank on top for at least 7 years. The regulatory restrictions on smartphone subsidies have reportedly slowed the growth of ASP in recent years. Speaking of the US (3rd) and UK (4th), the latter will likely outgrow the US in 2024 with a slight margin. It could be due to a higher acceptance of the iPhone in the past couple of years along with a faster upgrade cycle. Nonetheless, the graph shows that the US will surpass the UK in ASP by 2025 or 2026. The global smartphone market will also grow by 3% this year as compared to 2023.
China, India, and the US will lead the overall growth of the smartphone market
As Sammobile noted, “The future looks bright for the smartphone market.” The Indian and Chinese market has a very high demand for value for money and entry-level devices. This could be a reason behind India’s 71st rank in the average selling price.
Three countries – China, India, and the US are likely to lead the overall growth of the smartphone market. These three countries are expected to contribute almost half the global smartphone revenue by 2024. Abhilash Kumar, Industry Analyst at TechInsights, noted that new smartphone form factors like foldable and rollable phones, and the incorporation of 5G equipment in the more affordable phones will raise the average selling price in the coming years.
