LONDON, Feb 1, 2026, 12:11 (GMT)
- In Q4 2025, the average selling price topped $402, surpassing the $400 mark for the first time
- Global smartphone revenue hit a record $135 billion, driven by a 4% increase in shipments
- Analysts caution that rising memory chip prices might tighten margins and drive costs up in 2026
For the first time ever, global shoppers shelled out an average of $402 for a smartphone in Q4 2025, according to Counterpoint Research. That’s a jump from $350 just three months earlier. Meanwhile, worldwide smartphone revenue hit an all-time high of $135 billion, marking a 7% increase year-over-year, even though shipments only rose 4%. “The premiumization trend remained the key driver,” said Shilpi Jain, highlighting how consumers are opting for pricier models. PhoneArena
Unit growth remains slim, making this shift significant. Vendors are betting on higher-end phones — with extra storage, memory, and improved cameras — to boost revenue, while rising component costs are driving prices up, too. Counterpoint’s ASP figures reflect wholesale prices, not the final consumer cost at checkout.
The recent price rebound follows a prolonged slump in the market. On Jan. 29, Omdia reported that global smartphone shipments climbed 2% in 2025, reaching 1.25 billion units—the highest since 2021. However, Runar Bjorhovde warned of “headwinds building for the 2026 outlook” as supplies of DRAM and NAND tighten. DRAM refers to working memory (RAM), and NAND is storage; both are essential for high-end smartphones. Omdia
According to Counterpoint data, Apple grabbed roughly 57% of industry revenue during the holiday quarter, highlighting how its premium iPhone lineup skews global averages. Samsung Electronics came in second, buoyed by a resurgence in flagship sales despite a strong push in the mid-range segment.
Samsung’s unit shipments climbed 17% this quarter, yet its average selling price dropped 20% year-over-year, driven by stronger sales of lower-cost Galaxy A models, according to Counterpoint data. The trend is clear: higher volume, thinner margins.
Higher DRAM and NAND prices hit Xiaomi and other budget-focused brands hard, squeezing their ability to offer discounts. Oppo, focusing more on premium devices, showed one of the strongest revenue jumps in Counterpoint’s early report.
Signs of strain are emerging in 2026 planning. Nikkei Asia revealed that Apple will focus on producing and shipping its top three iPhone models next year, including its first foldable iPhone, while postponing a standard model due to supply bottlenecks and rising memory prices. Reuters reported Apple didn’t immediately comment. An executive from an iPhone supplier noted, “Supply chain smoothness is one of the key challenges for this year.” Meanwhile, Apple CEO Tim Cook described demand as “staggering,” according to the report. Reuters
Tarun Pathak, research director at Counterpoint, cautions that AI-driven features will speed up price hikes since they require more memory and advanced chips. Several vendors have started factoring this into their product plans.
That said, the industry’s new price floor isn’t set in stone. If consumers hold off on replacing devices longer, or if a rougher economy pushes operators and retailers to lean on heavy promotions again, average prices could still drop despite high parts costs.
The data is clear for now: record revenue with only modest shipment gains. The real question in 2026 will be if buyers continue to pay the premium or if sticker shock ends the party.
