iPhone X pushes average selling price of smartphones up even further in Q1 2018

iPhone X pushes average selling price of smartphones up even further in Q1 2018
The average selling price of smartphones grew significantly in Q1 2018. Despite a number of reports claiming that demand for premium smartphones was on the decline, a new report by German research group Gfk reveals a significant increase in average selling prices (ASPs) across the globe.

According to the report, the ASP of smartphones across the globe is now heading towards the $400 mark, with Q1 2018 seeing an average price of $374, representing a huge increase of 21% over the first quarter of 2017 when the global ASP sat at $310. Although this growth in pricing is represented as an industry average, it’s worth noting that the majority of it came from Apple’s iPhone lineup, more specifically the iPhone X. The launch of Apple’s latest flagship smartphone has propelled the ASP of iPhones to just under $800. For comparison, the ASP of Android phones is much closer to the $200 mark. Even Samsung, which competes directly with Apple in the high-end market, recently saw an average selling price of just under $250.

In any case, the importance of this overall ASP increase – and the18% growth in global revenue to $129.8 billion – is highlighted further by a significant decline in smartphone demand during the quarter. Q1 of 2018 is estimated to have seen global sales of just 347 million units, representing a 2% decline year-on-year at a global level, although markets such as Great Britain and Spain saw declines of 11% and 7% respectively, while North American sales also dropped 5% during the period.

Going forward, the smartphone market is expected to remain stagnant due to a point of saturation that it has reached. Thanks to the higher selling prices of devices, though, manufacturers such as Apple are expected to remain largely unaffected. When it comes to low-cost brands, however, the drop in demand could ultimately affect their business model significantly – it often relies heavily on strong demand to make up for lower profit margins.

source: Gfk via: AppleInsider

Related phones

iPhone X
  • Display 5.8" 1125 x 2436 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 2716 mAh(21h 3G talk time)

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15 Comments

1. Nimbus

Posts: 433; Member since: Apr 02, 2018

After Inscreen fingerprint scanner,5G network,7nm euv procces node,foldable phones inward/outward there will be no more growth in smartphones,It will reach a certain plateau point where making any degree of growth will be diffcult to gain so only choice would be to make good specs phones at cheap price like xiaomi to earn good profit on their different business models.

2. Nimbus

Posts: 433; Member since: Apr 02, 2018

Only good thing will be new OS,PWA and all AR,VR mobile related Apps,Program stuff for better user experiance which will ignite interest in consumers again to buy gadgets again above ASP just like Smartphones did this decade.Here hoping windows 10 PC Pocket experience come into mobiles sooner since nothing much left now after all those A.I,AR,VR stuff and companies follow msft footstep just like apple did with iphone in 2017.

3. techbuttcheex

Posts: 202; Member since: Jul 25, 2015

I ain’t buying that s**t.

4. CreeDiddy

Posts: 2020; Member since: Nov 04, 2011

What these numbers show is longevity for Apple. Everything for Android seems unknown.

13. sgodsell

Posts: 6588; Member since: Mar 16, 2013

Android is here to stay. Plus Android owns the lower end and mid range market by a mile. Take a look at the following sales facts. Since most of you Apple people like to talk about profit margins. Well what about market share and sales growth. Take a look at the last 3 years of smartphone sales. 2015 smartphone sales - Android 1.181 billion, iPhones 225.6 million 2016 smartphone sales - Android 1.262 billion, iPhones 215.6 million 2017 smartphone sales - Android 1.320 billion, iPhones 214.4 million Android continued to grow in market share, while Apple fell each year and continued to loose market share. Not to mention the rumors of Apple releasing a lower priced iPhone. Then what do you think that is going to do with Apples high end iPhone sales? Well I can guarantee you it will lower Apples ASP.

5. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

"iPhone X pushes average selling price of smartphones up even further in Q1 2018" It's not wrong, but it's not completely truthful either. The truth is that every single device which costs more than the average selling price(ASP) of smartphones is raising the ASP, it's simple math. This means flagships in general are raising the ASP of smartphones, not just a single flagship (iPhone x).

6. midan

Posts: 2409; Member since: Oct 09, 2017

"it’s worth noting that the majority of it came from Apple’s iPhone lineup, more specifically the iPhone X. The launch of Apple’s latest flagship smartphone has propelled the ASP of iPhones to just under $800. For comparison, the ASP of Android phones is much closer to the $200 mark. Even Samsung, which competes directly with Apple in the high-end market, recently saw an average selling price of just under $250."

7. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Yes, thank you. I'm so glad you showed me what i have already read, as it's a part of the article. None of that proves anything i said wrong. Do you not understand basic math? Every phone that costs more than the ASP of smartphones is going to raise the average ASP of smartphones when it is sold. This means every single smartphone that costs more than 400$ is going to raise the ASP. Comeon dude, this is so simple. Spend some time on reading it before replying back to me this time, as i don't want yet another reply that proves nothing i said wrong. I don't want you to waste more of my time to go off track and instead use the opportunity to give yourself a hard on over Apple.

8. midan

Posts: 2409; Member since: Oct 09, 2017

Android ASP is not growing thanks to the fact most phones sold are under ASP, which also will lower the ASP, funny you didn't mention that or didn't knew? So now not every phone over the ASP not raise the ASP If bigger sales comes from very cheap phones which is exactly what happens in Android world. IPhone ASP is predicted to be up quite lot compared to last year number. I don't know If you missed the article about share of iPhones sold this q in US almost 80% of those were iPhone 7 or newer, which are all very expensive phones. That will do very good for ASP. iPhone is mostly reason for that huge growth in ASP even If you don't like it.

10. TechSceptic

Posts: 1156; Member since: Feb 05, 2018

Once again you're completely missing the point and wasting my time. Please read it again and try to comprehend it, instead of instantly looking at everything as an Apple vs Android contest, where you have to try and give yourself as big a hard on for Apple as you possibly can while typing your replies. It's obnoxious to watch your Apple propaganda, especially when you're replying to me with it, when it's not even relevant to my post.

14. mackan84

Posts: 61; Member since: Feb 13, 2014

Not to make it into a android vs apple-thingy. But if androids ASP has shrunk and apples ASP has grown... Doesn’t that mean that... never mind, I’m getting a hard on from this.

9. rkoforever90

Posts: 405; Member since: Dec 03, 2011

mid range phones are now good enough just boycott these overpriced garbages they will bring the price down.

11. fyah_king unregistered

I didn’t buy one. Only an idiot would pay $1k for a phone. It’s ok, my Apple stocks is growing.lol

12. midan

Posts: 2409; Member since: Oct 09, 2017

Isn't it going down?

15. tokuzumi

Posts: 1730; Member since: Aug 27, 2009

All the articles are telling us the X doesn't sell. Now it's driving up phone transaction prices. One of these is fake news.

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