According to a new study published by the company Counterpoint Research, the average selling price of a smartphone increased by 10% year-on-year, during the third quarter of 2022. Surprising, at first glance, given that sales have collapsed, and considering the macroeconomic context.
High-end smartphones take a bigger share
Nevertheless, Counterpoint explains that, precisely, compared to this crisis, the premium smartphone market is more resilient. In other words, those who buy high-end smartphones, like the Pixel 7 or the iPhone 14, have fewer problems with purchasing power.
And as a result, the decline in smartphone sales would mainly affect the cheapest models. And the average sale price of a smartphone, in the world, has increased. In fact, while smartphone shipments in the third quarter saw a 12% drop, industry revenue was only down 3%, according to data from Counterpoint.
5G has also contributed
In addition to the premium smartphone segment, it is also 5G that is reducing the impact of the crisis on manufacturers’ revenues. These cost more. And an estimated 46% of smartphones shipped in Q3 were 5G smartphones. However, 5G devices would have generated 80% of quarterly revenue. Indeed, on average, the selling price of a 5G device would be 5 times higher than that of an LTE device.
Of course, some brands benefit more from this situation than others. Apple, 95% of whose smartphones have 5G, would have seen its revenues increase by 10% year-on-year, while the average selling price of its devices would have increased by 7%. According to Harmeet Singh Walia, senior analyst at Counterpoint, the performance of the Cupertino company has contributed to the increase in the average selling price in the smartphone industry. “This is partly thanks to the launch of the iPhone 14 series as well as Pro models”says the analyst.
In terms of revenue, Samsung is in second place. And the average selling price of its devices rose 2% in the third quarter. But his income fell by 4%. The good news is that during the third quarter, Samsung reportedly doubled its shipments of folding smartphones.