Although the smartphone market has cooled down since its 2017 peak, technological advancements, shorter upgrade cycles, and affordable smartphones becoming available in emerging markets continue to fuel consumer spending, pushing it toward record highs.
According to data presented by Betideas.com, global smartphone spending will surpass half a trillion dollars for the first time in 2026.
Annual Smartphone Spending Matches the GDP of a Mid-Sized Economy
The fact that people continue to spend hundreds of billions of dollars on new smartphones each year is even more staggering when considering the number of devices already in use. According to the Global 2025 Digital Overview Report, there were 7.42 billion smartphones in use worldwide at the start of 2025, 1.5 billion more than just five years earlier, growing much faster than the global population. Even more shockingly, at this pace of growth, smartphones could outnumber people as soon as 2028.
Still, the growing availability of affordable smartphones in emerging markets, combined with tech advances like high-end cameras, foldable screens, and smart assistants, continue driving demand, with consumers reaching deeper into their pockets than ever to buy new devices.
According to a Statista survey, smartphone users worldwide have been spending well over $400 billion annually on new devices for more than a decade, a figure equivalent to the GDP of a mid-sized economy. In 2025, annual smartphone spending is expected to hit $485 billion, marking a staggering $18 billion increase in a single year. Moreover, this upward trend is set to continue, with the annual spending reaching over half a trillion dollars for the first time in 2026.
Statista expects consumers worldwide to keep adding between $18 billion and $20 billion to the global smartphone bill each year, driving total industry revenue to over $560 billion by 2029. Nearly a quarter of that value will come from China, the world’s largest smartphone market. Europeans are projected to spend around $95 billion on new devices, while Americans will contribute over $60 billion the same year.
Rising Smartphone Prices Fuel Revenue Growth
While technological advances, faster upgrade cycles, and growing demand in emerging markets will all drive smartphone revenue growth, rising prices are also a key factor.
According to Statista estimates, the average smartphone price is set to rise by 3% in 2025, increasing from $287 to $296. This marks the first increase since 2021, pushing the average price closer to the $300 range, where it has been most of the time. Unfortunately, this is just the start of a long-term trend.
Statista data show the smartphone market is heading into five years of steady price increases, leading to double-digit growth by the end of the decade. After reaching $296 in 2025, the average smartphone price is expected to hit $304.5 in 2026 and then jump to over $312 in 2027. The increasing trend will continue in 2028 and 2029, adding another $16 and pushing the average smartphone price to $328, 10% more than this year.
