Global Smartphone Average Selling Price Surges Beyond $400 for the First Time
The smartphone industry has reached a significant milestone as the average selling price (ASP) for smartphones exceeded $400 for the first time in history. This increase is driven by a combination of new flagship releases, rising demand for premium features, and ongoing supply chain challenges. In this article, we’ll explore the factors contributing to this trend and examine the performance of leading smartphone brands in the final quarter of 2025.
When Apple launched the original iPhone in 2007, pricing for the 8GB model peaked at $599. Fast forward to today, and smartphones have largely crossed into four-digit pricing territory. The move towards premium pricing was first notably marked by the introduction of the iPhone X, which was the first modern device to breach the $1,000 threshold. In historical context, the IBM Simon Personal Communicator had initially been the first smartphone priced over $1,000 back in 1994, although it met with poor sales.
The Rise of Average Smartphone Prices
According to Counterpoint Research, the fourth quarter of 2025 saw the ASP of smartphones reach an impressive $402, marking a dramatic increase from the previous quarter's $350. Global smartphone revenue also achieved a record high of $135 billion during this period, reflecting a 7% year-over-year increase, alongside a 4% rise in shipments.
Brand Performance and Market Insights
Despite Apple leading in revenue, Oppo emerged as the fastest-growing brand during this period. The success of the iPhone 17 Pro Max was a significant contributor to Apple's impressive $85.27 billion in sales in Q4 2025, with strong demand across China, North America, and Latin America.
However, Samsung faced challenges, experiencing a substantial decline in ASP due to decreased demand for its foldable models. While the company maintained its second position in market revenue, its average selling price plummeted by 20% year-on-year, reflecting the shifting consumer preferences.
Challenges Ahead for the Smartphone Market
Oppo recorded the highest ASP increase in the fourth quarter at 6%, while competitors like Xiaomi saw declines in both revenue and shipments by 9% and 11%, respectively. In contrast, Xiaomi's ASP managed to rise by 3% due to premium releases.
Looking forward, Counterpoint's research indicates that rising ASPs are likely to continue, driven by the integration of AI features and increasing memory chip prices. This trend could result in reduced global smartphone shipments in 2026 as manufacturers navigate these challenges.
