The average price of smartphones has experienced notable fluctuations over the past five years. In 2021, the average price exceeded $318 but decreased to $287 by 2024. While this 10% reduction was welcomed by many, future trends indicate a reversal.
Projected Price Increase
According to AltIndex.com, the average smartphone price is projected to increase by nearly 15% over the next five years, reaching over $328 by 2029. This anticipated rise is the highest among all technology devices, signaling a significant shift in the market.
Impact of Technological Advancements
Smartphones today incorporate advanced technologies such as artificial intelligence (AI) and machine learning, which enhance performance and user experience. These innovations, along with the introduction of more mid-range and premium models, contribute to rising costs.
Historical Price Increases
Since 2019, the average price of Apple’s iPhone has surged by approximately 23% or $188, nearing $1,000 this year. Android smartphones have also seen a significant price increase, up 29% to an average of $335. Despite this, Android prices remain relatively modest compared to the premium iPhone models.
Future Price Comparisons
A Statista survey predicts that the average price of smartphones will continue to rise, reaching over $328 in 2029. This increase will make smartphones more expensive than tablets, which are expected to see a 3% price rise, reaching $315. In contrast, laptop prices are projected to grow by 6.6%, from $706 in 2024 to $753 by 2029. Digital cameras and VR headsets are expected to maintain their current prices, while desktop PCs are anticipated to experience a slight price drop.
Revenue Forecasts
Despite a projected decline in global smartphone sales revenue to $467 billion in 2024 due to economic conditions and market saturation, future revenue is expected to rise significantly. With consumers spending an average of $40 more per device and an increase in smartphone users, global revenue is projected to grow by nearly $100 billion, reaching over $562 billion by 2029. China will contribute approximately $137 billion to this figure, while the United States and India are expected to each account for about $63 billion in smartphone sales revenue.
