New data is emerging that points to to the recent overall price reduction in the smartphone market being a temporary phenomena. The average smartphone price in 2021 was $318, which has fallen to $287 this year. Statista expects the average price per unit in the smartphone market to jump nearly 15% to over $328 in 2029, which would make it the highest increase among all tech devices.
Smartphones to Become More Expensive than Tablets
Today, smartphones use various advanced technologies to enhance performance, functionality, and user experience. However, these tech innovations, including AI and machine learning, and the introduction of more mid-range and premium models, come with a cost.
Since 2019, the average price of Apple`s iPhone increased by approximately 23% or $188, reaching close to $1,000 this year. Android smartphones saw an even bigger increase in this period, with their prices rising by 29% to an average of $335, which is still relatively modest compared to the premium pricing trends in the iPhone segment.
According to a Statista survey, most people will spend much less than that on buying a new smartphone, or $287, the average smartphone price in 2024. However, this figure will increase in the following years. Statista expects the average smartphone price to grow for five years in a row and hit over $328 in 2029, 15% more than this year. Thanks to this price jump, the largest among all tech devices, smartphones will become more expensive than tablets.
Statista expects the average price per unit in the tablets segment to grow by 3% and reach $315 in 2019, or $13 less than in the smartphone market. Laptops will see a 6.6% price growth in this period, rising from $706 in 2024 to $753 in 2029. The average prices of digital cameras and VR headsets will remain unchanged, while desktop PCs are the only devices with a projected price drop of 1%.
Annual Smartphone Sales Revenue to Jump by $100 Billion by 2029
Due to economic conditions, market saturation, and shifts in consumer behavior, global smartphone sales are expected to drop by $12 billion year-over-year to $467 billion in 2024. However, with people spending an average of $40 more on a new device and the number of smartphone users rising, the revenue in the smartphone industry will increase significantly in the next five years.
Statista expects global smartphone revenue to grow by almost $100 billion and hit over $562 billion by 2029. One-quarter of that value, or $137 billion, will come from China, the world`s largest smartphone industry. The United States and India follow with an 11% market share each and roughly $63 billion in smartphone sales revenue by 2029.
See also: The iPhone Has Taken The Global Smartphone Crown From Samsung
