Chinese smartphone manufacturers, known for their competitive pricing, are poised for a significant shift in strategy as average prices are predicted to surge by nearly 40% by the end of the decade. This increase, according to data presented by Stocklytics.com, is three times greater than the projected growth in the global smartphone market.
While brands like Xiaomi, Oppo, and Vivo have captured a substantial share of the global market by offering high-spec devices at lower price points, this trend appears to be evolving. A Statista Market Insights survey indicates that the era of ultra-affordable Chinese smartphones may be coming to an end, with a substantial price increase anticipated in the next five years.
Historically, the Chinese smartphone market has seen a 12% decrease in average price per unit over the past six years, falling from $310 in 2018 to $270 in 2024. Conversely, the US market experienced a 13% rise in average smartphone prices during the same period, reaching $430.
However, Statista predicts a narrowing of this price gap in the coming years. By 2029, the average price of a Chinese smartphone is projected to reach $380, while the global market average is expected to be $330, and the US market average $450.
This shift in pricing strategy is likely to impact sales revenue. Statista estimates that the Chinese smartphone industry will generate $105.5 billion in 2024, increasing to $137.4 billion by 2029. In contrast, the US market is predicted to see a more modest growth, with sales revenue reaching $63.5 billion in the same timeframe.
These projections suggest that while Chinese smartphone manufacturers will continue to play a dominant role in the global market, their competitive edge based on price may become less pronounced in the years to come.