In 2024, over 4.2 billion people used smartphones, and this massive user base spent nearly half a trillion dollars on new devices, equivalent to the GDP of countries like Ireland, Israel or the United Arab Emirates. This staggering figure is expected to climb even higher, driven by a growing user base and rising prices.
According to data presented by Stocklytics.com, the average smartphone price is expected to hit close to $330 by the end of a decade, or 15% more than this year.
Five Years of Rising Prices Ahead
The average smartphone price has fluctuated significantly over the past five years, going from over $318 in 2021 to $287 in 2024. While many welcomed this 10% price drop, the following years will bring just the opposite trend.
Inflation, supply chain issues, and rising component prices are driving up production costs in the smartphone landscape. At the same time, new-generation devices use advanced technology, like AI-powered processors, high-resolution cameras, and cutting-edge displays, which come with a cost. The surging demand for premium features and flagship models has also fueled price growth in the market.
According to a Statista Market Insights survey, the smartphone industry faces five years of rising prices. Starting at $287 in 2024, the average smartphone price will reach nearly $300 in 2025 and continue growing for another four years. By 2029, smartphone users will pay an average of $329 for a new device, 15% more than today and $10 more compared to the previous peak of $318 in 2021.
The Statista data also show smartphones will see the biggest price growth of all IT devices. Laptops, for example, will see a 6.6% price growth in this period, rising from $706 in 2024 to $753 in 2029. The average price per unit in the tablets segment will grow by 3% and reach $315 in 2019, prices of digital cameras and VR headsets will remain unchanged, and desktop PCs are the only devices with a projected price drop of 1%.
Rising Prices and Growing User Base to Drive $100 Billion Revenue Growth
With smartphone users surging to a projected 6 billion and people spending an average of $40 more on a new device than this year, the smartphone industry revenue will grow significantly in the end of a decade.
Statista expects that by 2029, smartphone sales will generate $562 billion in revenue, almost $100 billion more than this year. China, the world’s largest smartphone market, will make up a quarter of that value, or $137 billion, more than the United States and India combined.
An earlier Stocklytics report also showed that Chinese smartphone prices will outpace global growth, rising by almost 40% by the end of a decade, or three times the industry average.
