Sharp Increase in Smartphone Prices Looming Ahead
Consumers seeking to purchase smartphones are bracing for a significant price escalation, as recent analyses indicate that the global average selling price of mobile devices is projected to surpass A$800 by 2026. This trend stems from manufacturers prioritizing profit margins over volume sales.
According to Omdia’s projections, worldwide smartphone shipments are set to decline by 12.2% year-on-year in 2026, resulting in a total of 1.093 billion units sold—an astonishing drop of 152 million units compared to 2025.
Notwithstanding this downturn in unit sales, the market’s overall value is anticipated to rise by 6.1%. This shift illustrates a pronounced transition from high-volume sales of budget smartphones to a focus on a reduced number of premium-priced models.
The average selling price is expected to elevate from US$467 in 2025 to US$565 in 2026, marking a 21% increase—this represents the most substantial annual jump, both in percentage and dollar terms, witnessed in the sector.
This evolving trend has been in evidence for several months.
A report by Canstar reveals that Australian smartphone consumers already spend an average of A$986 on outright purchases.
Omdia forecasts the average global smartphone selling price will rise from approximately A$673 in 2025 to A$814 in 2026, an increment of about A$141.
Should this 21% surge also affect the Australian market, the local average expenditure could escalate by A$207, nearing the A$1,200 mark.
Additionally, Counterpoint has highlighted that for the first time in late 2025, global smartphone prices crossed the US$400 threshold in a single quarter, largely driven by a trend toward premium devices and the escalating costs of components.
Omdia attributes the latest price surge to significant pressure on components, particularly in memory storage solutions.
Average prices for DRAM and NAND flash components surged more than 80% quarter-on-quarter in Q1 of 2026, with additional increases observed in the subsequent quarter.
While it is predicted that memory price increases may plateau in the latter half of the year, Omdia cautions that the costs of components will remain structurally high, compelling manufacturers to burden consumers with these expenses.
This situation is particularly pronounced in Australia, where high-end offerings from brands such as Apple, Samsung, Google, and Motorola already exceed A$1,000, while foldable models push prices even higher.
Recent reports suggest that Samsung may leverage Apple’s anticipated first foldable iPhone—expected to retail around A$3,600—as a pretext to elevate prices for its Galaxy foldables.
Counterpoint also predicts that the average selling prices (ASPs) of foldable smartphones will ascend by 18% in 2026, reaching US$1,485.
Omdia anticipates that the shipment decline will persist into 2027; however, the contraction is expected to decelerate to 0.9%.
A significant recovery in unit sales is not foreseen until 2028, as prominent global brands are likely to exhibit caution regarding the expansion of ultra-low-end offerings.
This could leave the sub-A$145 smartphone segment increasingly dominated by smaller, local, and regional manufacturers, while global corporations concentrate on achieving higher margins through premium models.
Source link: Channelnews.com.au.
