Business

GfK: average selling price of smartphones increased at record pace

The average price of smartphones rose at record pace in Q3 last year and then again in Q4. Data by GfK shows that consumers were paying $363 on average, a 10% increase year on year. This also represents the fastest quarterly rise.

The number of smartphones sold in Q4 was almost flat just 1% up. But the revenue from those sales rose significantly, 11% globally.

This increase was the biggest in Central and Eastern Europe where unit sales went up 7% but revenues are up 28%. In Western Europe and China, unit sales are down 3% but revenues still increased by a solid 17%.

4Q 2016 vs. 4Q 2017
Units sold (in million)
Sales value (in billion USD)

4Q16
4Q17
Y/Y % change
4Q16
4Q17
Y/Y % change
Western Europe
38.3
37.0
-3%
16.1
18.8
17%
Central and Eastern Europe
22.6
25.2
7%
5.4
6.9
28%
North America
58.7
62.0
6%
27.4
28.5
4%
Latin America
33.1
35.0
6%
10.0
11.2
12%
Middle East & Africa
42.6
46.2
8%
10.6
10.9
3%
China
118.4
114.7
-3%
36.6
43.0
17%
Developed Asia
20.3
18.5
-9%
13.9
13.2
-5%
Emerging Asia
58.9
58.6
-1%
10.1
11.5
14%
GLOBAL
393.9
397.2
1%
130.1
144.0
11%
Source: GfK Point of Sales (POS) Measurement data in 75+ markets, monthly data to the end of November 2017, plus weekly data to 31 December 2017. Percentages are rounded.

GfK attributes this to the new breed of bezel-less phones, which started at the top of the market (but have been making their way to the mid-range).

For the full 2017, unit sales are up 3% – to a total of 1.46 billion and the monetary increase is 9%, again indicating a rise in the average selling price.

2016 vs. 2017
Units sold (in million)
Sales value (in billion USD)

2016
2017
Y/Y % change
2016
2017
Y/Y % change
Western Europe
131.0
125.6
-4%
53.5
56.0
5%
Central and Eastern Europe
78.0
85.2
9%
16.8
21.2
26%
North America
198.2
201.3
2%
82.9
84.0
1%
Latin America
105.9
115.8
9%
30.9
36.8
19%
Middle East & Africa
168.9
176.5
4%
42.1
41.5
-1%
China
448.5
454.4
1%
133.1
152.3
14%
Developed Asia
72.9
68.5
-6%
46.1
44.2
-4%
Emerging Asia
214.5
232.7
8%
34.5
42.7
24%
GLOBAL
1,417.9
1,460.0
3%
439.9
478.7
9%
Source: GfK Point of Sales (POS) Measurement data in 75+ markets, monthly data to the end of November 2017, plus weekly data to 31 December 2017. Percentages are rounded.

The analysts do have some good news. Developed markets are reaching a saturation point, which will push makers to focus on consumer retention and encourage innovation and differentiation.

Source