This year, global smartphone prices have risen an average of 15%.
According to market research firm Counterpoint Research on the 10th, more than four out of 10 smartphone models worldwide raised prices this year, pushing the average selling price up 15%.
By region, price increases were particularly steep in emerging markets. India saw the largest rise at 21%, followed by Asia-Pacific at 19%, the Middle East and Africa at 18%, and Latin America at 16%. The higher share of mid- to low-priced smartphones in emerging markets is seen as the reason.
Markets with a higher share of premium smartphones or active carrier-backed subsidies and installments saw relatively limited increases. China rose 10%, Europe 7%, and the United States 5%.
Manufacturers are also responding to rising costs by adjusting product specifications in addition to raising prices. They are lowering device storage, scaling back camera specs, and reintroducing 4G (fourth-generation mobile communication) models at certain price points.
Tarun Pathak, a Counterpoint Research director, said, "As memory emerges as a key variable in smartphone component costs, price structures across the industry are being reshaped," noting that "manufacturers have almost no room left to absorb the expense." He added, "In markets with high price sensitivity, price increases averaging 16% to 21% are adding to consumers' purchase burden, and consumers are delaying upgrades, waiting for major sales events, or turning to the used market."