The global average smartphone price has seen record growth lately, and that's mainly because of expensive flagships such as the iPhone X, the Galaxy Note 8, and other.
Flagship smartphones with high-end specs and features always come with steep price tags, but this year has brought a notable surge overall. Based on GFK point-of-sale information, the last quarter of 2017 saw a record 10 percent year-on-year growth in the average smartphone sales price.
Global Average Smartphone Price Increases
After the explosive Galaxy Note 7 fiasco back in 2016, Samsung came back in two force and its latest smartphone, the Galaxy Note 8, costs a hefty $930. Apple devices have always been on the expensive side of the price spectrum, but the latest iPhone X is the most expensive to date, starting at a whopping $999 price.
As GFK data points out, the global average smartphone price has seen record growth, surging at rates fastest than ever. Most smartphones didn't actually get more expensive, and the high price of flagships did not have a major effect on the total smartphone sales, low-end and mid-range included.
This means that despite most smartphones not seeing a tremendous increase in price, the steep price of top flagships was enough to boost the global average smartphone price.
"Global smartphone average sales price (ASP) increased by 10 percent year-on-year to USD 363, its fastest quarterly growth rate to date," says GFK.
Flagship Smartphone Prices
The average price for a high-end flagship smartphone used to be around $600 or $700, gradually increasing along with inflation for roughly a decade. Things changed in 2017, however, with the $930 Galaxy Note 8, the $999 iPhone X, and other steep flagships.
Even Google, which used to make high-end smartphones at more affordable price points with its Nexus line, has upped the ante with its more expensive Pixel line. In 2017, the company released its Pixel 2 XL at $849.
On average, global smartphone sales, which include all types of smartphones, hit 397 million units in fourth quarter of 2017, marking a 1 percent bump year-on-year. The Middle East and Africa saw an 8 percent growth, serving as the main drivers for demand, followed by Central and Western Europe, with 7 percent growth.
What saw remarkable growth is the sales value, with expensive flagships counting enough as to change the entire average so dramatically. Nevertheless, although flagships did get notably more expensive, they are also more advanced than ever, with sleek displays and high-tech specs and features all around.