As per the latest statistics from the Counterpoint Research, the average selling price of smartphones around the world has increased by 10%. This was assumed to be the impact of various factors like the COVID-19 pandemic, shift to 5G handsets and heavy reliance on new technologies. Reports also revealed that budget and mid-range phones have declined in sales more than of premium handsets.
Smartphone Average Selling Price Increased Across the World
Analytics from Counterpoint research reveals how the smartphone OEMs across the world were impacted by the current pandemic, and have increased prices to cover up losses and also, cash on the new opportunities. As per the reports, the Average Selling Price (ASP) of all smartphones have increased by 10% across the world.
This happened when the global smartphone industry’s revenue has fallen by 15%, and the shipments declined by an ATH 23%! Also, the second quarter of this year, which the statistics point out, reveal that Apple has swum against the stream with increased shipments of 3%. It also becomes the major shareholder in the premium segment, which has less impact because of the pandemic than the mid-rangers.
Yes, mid-range and budget smartphones have hit than premium smartphones. This is due to the buyers of budget phones in most countries purchase offline. And with the closure of these brick-and-mortar stores amidst pandemic lockdowns left no choice for those buying group. Also, the people shifting to 5G handsets is determined to be another factor for increasing prices.
The 5G phones share in this second quarter has about 10%, and contributed a revenue share of 20% since most of the 5G phones are of premium. Also, people relying on phones more than earlier for several purposes like work-from-home, study-from-home, gaming, productivity etc have driven the opportunities for OEMs to increase prices.