Global smartphone prices have risen an average of 15% this year, as surging memory chip prices squeeze manufacturers' margins and push up the cost of both existing and newly launched models.
More than four out of every 10 smartphone models worldwide raised prices this year, according to market research firm Counterpoint Research on the 10th. Prices of newly launched models climbed about 25% on average, the firm said.
Price increases were steepest in emerging markets. India led with a 21% rise, followed by the Asia-Pacific region at 19%, the Middle East and Africa at 18% and Latin America at 16%.
In emerging markets, where mid- and low-priced handsets account for a large share of sales, manufacturers had less room to absorb higher component costs such as memory, passing more of the increase on to consumers.
Markets dominated by premium handsets or those with active carrier subsidies and installment plans saw smaller increases. Prices rose 10% in China, 7% in Europe and 5% in the United States.
Beyond raising prices, manufacturers are adjusting product specifications to cope with higher costs. Some are cutting storage capacity, scaling back camera features or reintroducing 4G models at certain price points.
Consumer behavior is also shifting as costs mount. More buyers are delaying upgrades or waiting for major discount events, while demand is growing for lower-capacity models and used smartphones.
Apple Raises Prices on Both New and Older Models
Apple, which had held iPhone prices steady in July even as it raised prices for MacBooks and iPads, has now followed suit. The company unveiled the iPhone 18 Pro and iPhone 18 Pro Max at a product event at Apple Park in Cupertino, California, on the 9th. The iPhone 18 Pro is priced at $1,199 and the Pro Max at $1,299, each $100 more than their predecessors.
Prices for older iPhones also went up. Apple has typically cut prices on previous-generation models when new devices launch, but this time it raised prices on the iPhone 17e, iPhone 17 and iPhone Air by $100 each. The iPhone 16, released about two years ago, also saw a $100 increase.
The iPhone 16's starting price rose to $799 from $699, while the iPhone 17e now starts at $699 and the iPhone 17 at $899. Apple discontinued the iPhone 17 Pro and Pro Max, which launched last year.
