Last year was terrible for smartphone brands, as sales declined year-over-year. However, not everything was bad. People have actually started spending more on smartphones, and a new report reveals how much people spend on average. Consumers in Samsung's home country spent the most on average on smartphones, bringing a good outlook for Galaxy S and Galaxy Z series devices.
South Koreans are lapping up Samsung foldable phones, resulting in rise of average smartphone selling price
According to a new report from market research firm TechInsights, South Korea, Japan, and the US were the top three markets with respect to smartphone Average Selling Price (ASP). The sales of Samsung's Galaxy Z series foldable phones are among the reasons TechInsights has quoted for the rise in smartphone ASP in South Korea. This figure is estimated to keep rising until at least 2029, which is great news for Samsung's foldable phones, especially since Samsung has multiple generations of foldable phones. Price growth has also been reported for iPhones in recent years.
In Japan, though, regulatory restrictions on smartphone subsidies have slowed the growth of ASP. Japan was the top-ranked country in terms of smartphone ASP until 2020, but South Korea topped it in 2021. The UK ranked fourth in 2023 but is expected to outgrow the US this year to rank third. This is due to the higher penetration of iPhones in the past couple of years and a faster upgrade cycle. However, the US is estimated to regain its third position in the next few years. The global smartphone market is estimated to grow by 3% in 2024 compared to last year.
While 2023 was bad, the future looks bright for the smartphone market. China, India, and the US are projected to lead smartphone growth. These three countries are expected to contribute almost half the global smartphone revenue by 2024. While India ranks 71st in average smartphone selling price, its massive population will drive revenue for OEMs. This makes India one of the best markets for smartphone brands to invest in, and Samsung is already in a great position. The company was the biggest smartphone brand in India in Q1 2024.
According to Abhilash Kumar, Industry Analyst at TechInsights, new smartphone form factors, like foldable and rollable phones, and deeper 5G penetration will improve smartphone average selling prices in the coming years. The complete TechInsights report, which includes data on 88 markets, can be read here.
