LONDON, Feb 1, 2026, 12:11 (GMT)
- Average selling price hit $402 in Q4 2025, clearing $400 for the first time
- Global smartphone revenue reached a record $135 billion as shipments rose 4%
- Analysts warn higher memory chip costs could squeeze margins and push prices higher in 2026
Global shoppers paid an average $402 for a smartphone in the fourth quarter of 2025, clearing $400 for the first time, according to Counterpoint Research data. The average selling price, or ASP, was $350 a quarter earlier, while global smartphone revenue hit a record $135 billion, up 7% from a year earlier, even as shipments rose 4%. “The premiumization trend remained the key driver,” Shilpi Jain said, referring to buyers trading up to higher-priced models. (PhoneArena)
That shift matters because unit growth is still thin. Vendors are leaning on pricier phones — more storage, more memory, better cameras — to lift revenue, and higher component bills are pushing in the same direction. Counterpoint’s ASP measure is based on wholesale prices, not what consumers pay at the till. (Notebookcheck)
The bounce in prices comes as the market claws back from a long slump. Omdia said on Jan. 29 that global smartphone shipments grew 2% in 2025 to 1.25 billion units, the highest since 2021, but warned “headwinds are building for the 2026 outlook”, Runar Bjorhovde said, as DRAM and NAND supplies tighten. DRAM is working memory (RAM) and NAND is storage, both crucial for higher-end handsets. (Omdia)
Apple accounted for about 57% of industry revenue in the holiday quarter, Counterpoint data showed, amplifying the impact of its premium iPhone mix on global averages. Samsung Electronics was second, helped by a rebound in flagship demand even as it pushed hard in the mid-range.
Samsung’s unit shipments jumped 17% in the quarter, but its average selling price fell 20% on an annual basis as cheaper Galaxy A models did more of the work, Counterpoint figures showed. The pattern is familiar: volume rises, margins strain.
For Xiaomi and other value-heavy brands, higher DRAM and NAND costs can be brutal, leaving less room to discount. Oppo, which has been leaning into higher-end devices, posted one of the stronger revenue gains in Counterpoint’s preliminary snapshot.
The squeeze is starting to show up in 2026 planning. Nikkei Asia reported that Apple will prioritise production and shipment of its three highest-end iPhone models for 2026, including its first foldable iPhone, while delaying a standard model amid supply constraints and rising memory costs; Apple did not immediately respond to a request for comment, Reuters reported. An iPhone supplier executive said “Supply chain smoothness is one of the key challenges for this year,” while Apple CEO Tim Cook called demand “staggering,” the report said. (Reuters)
Counterpoint research director Tarun Pathak has warned that demand for AI-enabled features will push selling prices faster because the software needs more memory and higher-end chips. Some vendors are already building that into their product roadmaps.
But the industry’s new price floor is not guaranteed. If consumers stretch replacement cycles — or if a tougher economy forces operators and retailers back into heavy promotions — average prices can slip even with parts costs high.
For now, the data point is stark: record revenue on modest shipment growth. In 2026, the next test will be whether buyers keep paying up, or whether sticker shock finally bites.
