Smartphone prices hit new high as consumers shift to premium devices

The global smartphone market's average selling price (ASP) crossed $400 for the first time in Q4 2025, rising 3% year on year as consumers gravitated towards premium devices. According to Counterpoint Research's latest Market Monitor Service, total smartphone revenues hit a record $135 billion — up 7% year-on-year — while shipments grew a modest 4%, signalling the industry's shift from volume to value.

Apple extends dominance with iPhone 17 momentum

Apple strengthened its market leadership with 57% of global smartphone revenue in Q4 2025, generating $76 billion — both revenue and shipments up 11% year-on-year. The iPhone 17 series drove much of this growth, with the Pro Max variant delivering the strongest year-on-year performance compared to previous generations.

Jeff Fieldhack, Research Director at Counterpoint Research, noted that Apple's "diversified lineup, including strong carry-over demand for earlier models and a balanced product mix, kept revenue momentum healthy." The company saw broad-based growth across regions, with supply improvements in China and strong demand in North America, Latin America, and Asia Pacific supporting results.

This performance builds on Apple's trajectory to become the world's top phone maker by volume, not just revenue.

Samsung leads shipment growth despite ASP decline

Samsung remained the second-largest contributor to revenue, with 11% market share and 12% year-on-year growth. More significantly, Samsung achieved 17% year-on-year shipment growth — the highest among the top five brands — driven by strong performance of the Galaxy A series across regions.

However, this volume-focused strategy came at a cost: Samsung's ASP declined 20% year-on-year as the company prioritised market share through holiday promotions and mid-range device traction. Shipment growth mainly came from Latin America, Southeast Asia, the Middle East and Africa, and parts of Europe, offsetting softer performance in North America and India.

The Middle East smartphone boom has clearly benefited Samsung's regional expansion strategy.

The premiumisation trend reshapes the market

Shilpi Jain, Senior Analyst at Counterpoint Research, explained that "the premiumisation trend remained the key driver in Q4 2025, as we observed early launches of flagship devices and smartphone price increases in some regions due to memory shortage."

This shift affects both developed and emerging markets. Consumers continued upgrading to higher-priced devices, with year-end holiday sales, financing, and trade-in offers driving value growth. Even the mid-tier segment witnessed strong traction, supported by promotions and improved purchasing power in emerging markets.

OPPO exemplified this trend, achieving the highest year-on-year revenue growth (23%) and ASP growth (6%) among top brands. This growth came from expanding its high-end portfolio, particularly the Reno 14 and Find series, and from overseas expansion in emerging markets, including MEA, Latin America, and Asia Pacific.

Component costs squeeze volumes ahead

The $400 ASP breakthrough comes with challenges. Rising memory prices and elevated component costs hit volume-focused brands hardest. Xiaomi saw revenue decline 9% year on year and shipments fall 11% as supply constraints and rising costs weighed on its entry-level and mid-tier portfolios.

Tarun Pathak, Research Director at Counterpoint Research, warned that "elevated memory prices and component costs will also squeeze smartphone shipments in 2026, forcing vendors to focus more on value growth and portfolio mix improvement."

Looking ahead, the market expects faster ASP rises driven by deeper premiumisation, demand for AI-enabled features, and DRAM/NAND price hikes. However, brands with limited pricing leverage face intensifying pressure as the industry prioritises survival over efficiency.

Market outlook and implications

The global smartphone market's performance in Q4 2025 demonstrates a fundamental shift towards premium devices. With ASP crossing $400 for the first time and revenue hitting record levels despite modest shipment growth, manufacturers must balance volume ambitions with value creation.

For UAE consumers, this trend suggests continued availability of premium features across price segments, though rising component costs may pressure mid-range pricing. The Middle East's position as a growth region for brands like Samsung and OPPO indicates strong local demand for both premium and value-focused devices.

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