The global average selling price (ASP) of smartphones has been steadily rising, driving revenue growth in the global market. Market research firm Counterpoint Research projected that the ASP, which was $357 (about 500,000 won) last year, will reach $370 (about 520,000 won) this year and $412 (about 570,000 won) in 2029. That is a modest increase of about 3% per year.
Behind the ASP increase are not only the expansion of premium models but also the spread of 5G and a consumer trend of preferring advanced features even in budget devices. In particular, generative AI smartphones and foldables are cited as the key drivers of price hikes. Counterpoint said that the introduction of AI features increased the cost per device by $40 to $60, and that in the long term consumers will recognize the value of the features and pay the additional expense. Foldables account for less than 2% of shipments, but their high unit prices are lifting the overall market ASP.
By region, North America and China are leading the ASP rise. In North America, premium devices dominate, and the ASP is expected to rise 7% this year. China is also expected to see 3.6% growth in ASP on the back of premium strategies by major manufacturers such as Huawei, Oppo, and Vivo and strong sales of Apple's Pro models. India is around $250 (about 350,000 won) this year but is expected to rise to $287 (about 400,000 won) by 2029.
By brand, Apple's rise stands out. The iPhone ASP, which was $919 (about 1.28 million won) this year, is projected to approach $1,000 (about 1.39 million won) in 2029. Its two-track strategy of running budget and Pro models in parallel and the future launch of a foldable iPhone are cited as factors that will drive ASP higher. Samsung Electronics has secured long-term growth drivers with foldables and AI adoption, but the high share of low- to mid-priced models in emerging markets is expected to limit its ASP increase. Xiaomi, Oppo, and Vivo are also pushing for premiumization, but for the time being, a slowdown in Chinese demand is likely to act as a hurdle.
Counterpoint Research said, "With supply chains stabilizing and premium devices spreading, the smartphone market will continue normalized growth," adding, "While shipment growth is limited, ASP increases will support revenue expansion."