The legendary Bob Dylan once sang, "You don't need a weatherman to know which way the wind blows." You don't need fancy analysis, trendlines and a desk full of data to know that the price of smartphones continues to rise. You might remember the outcry when Apple priced the original generation iPhone in 2007 with the 4GB model going for $499 and the 8GB variant priced at $599. A video of then Microsoft CEO Steve Ballmer showed him laughing about the pricing of the iPhone while criticizing the device's virtual QWERTY keyboard.
The 256GB iPhone X was the first smartphone of the modern era to be priced with four figures
Of course, today's top-of-the-line flagship phones are four figures. The 256GB iPhone X was not the first touchscreen smartphone to hit the magic $1,000 threshold but was the first in the modern smartphone era. The IBM Simon Personal Communicator was technically the first smartphone priced over $1,000 when released in August 1994. Only 50,000 units were sold which is why the Simon was long dead by the time the iPhone was first released in 2007. The average smartphone price hit an all-time high during the fourth quarter of last year.
The iPhone had a strong fourth quarter globally. | Image credit-Counterpoint Research
Now most of us look at flagship prices to determine how much a new smartphone costs. If so, you might be surprised to learn that, according to Counterpoint Research, during the fourth quarter of 2025 the average selling price (ASP) of a smartphone crossed over $400 for the first time during any quarter hitting an average price of $402. During the previous quarter (Q3), the ASP was $350. Shipments increased 4% year-over-year. For the first time in history, global smartphone revenue reached $135 billion during the final three months of the year, a 7% increase on an annual basis.
Samsung's ASP dropped sharply in Q4 due to lower demand for foldables
While the iPhone led the global smartphone market in revenue during the fourth quarter of 2025, can you guess the brand that was the fastest growing during the final quarter of 2025? It was Oppo. Meanwhile, the iPhone 17 Pro Max helped the Apple generate the strong fourth quarter numbers that it reported yesterday when it announced $85.27 billion in iPhone sales for the last three months of 2025. Strong sales of the iconic phone were seen in China, North America and Latin America.
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"The global smartphone market closed 2025 on a positive note, with its revenue and ASP both growing during the quarter. The premiumization trend remained the key driver in Q4 2025, as we observed early launches of flagship devices and smartphone price increases in some regions due to memory shortage, driving up the overall ASP. Consumers continued to upgrade "Persistent supply chain headwinds and elevated component costs."
-Counterpoint Senior Analyst Shilpi Jain
The iPhone was responsible for 57% of the industry's global revenue in Q4. Samsung was second, contributing 11% of the industry's revenue. Besides the usual suspects like the Galaxy S25 Ultra, the Galaxy Z Fold, and the Galaxy Z Flip, Samsung squeezed a good quarter out of its mid-range Galaxy A series phones which led to a leading 17% gain in fourth quarter shipments. However, Counterpoint says that lower demand for Samsung's foldables and stronger sales of lower priced models resulted in a stunning 20% decline in Samsung's average selling price for the fourth quarter on an annual basis.
Oppo had the highest average selling price increase during the final quarter of 2025
During the quarter, Xiaomi's revenue and shipments declined 9% and 11% respectively. Its shipments declined in China and India, two of its biggest markets. Despite this weakness, Xiaomi's average selling price rose 3% year-over-year thanks to some premium releases. Oppo's phones had the largest jump in ASP during the quarter with a 6% hike year-over-year.
What will the average selling price of smartphones do in the future? Counterpoint's Research Director, Tarun Pathak, says that the average selling prices will rise faster due to demand for AI-enabled features, and higher memory chip prices (DRAM/NAND). Higher memory prices is a problem that is already impacting Apple this quarter after having a minimal effect on Apple last quarter. Pathak says that the higher memory prices and ASP will lead to reduced global smartphone shipments in 2026.
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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