During 2024, more than 4.2 billion people around the globe used smartphones, spending almost 500,000 billion dollars on such new devices, equivalent to the gross domestic product of countries such as Ireland, Israel or the United Arab Emirates. And, according to analysts, this already staggering amount is set to rise even more, thanks to ever-increasing demand and rising prices.
Thus, according to data presented by Stocklytics.com, the average cost of a smartphone is expected to approach $330 at the end of this decade, 15% higher than the current one.
Five consecutive years of rising prices?
The average price of a smartphone has fluctuated over the past five years, reaching from $318 in 2021 to only $287 in 2024. According to analysts, this period of decline is over, and in the coming years we will experience continued growth, worldwide , of this average cost of purchasing a smartphone.
Inflation, availability issues, but also rising component costs are the main reasons why prices are rising in this area. And now, next-generation devices use even more advanced technologies, such as processors with AI capabilities, increasingly powerful cameras and screens, etc., all of which add to the average cost of a smartphone. Last but not least, the growing demand for premium features available on flagship models is fueling this steady price hike.
According to a study organized by Statista, the global smartphone industry will face five consecutive years of price increases. Starting from the average cost of a smartphone this year ($287), this statistic is expected to increase to nearly $300 by 2025, and by 2029, a user will end up paying, on average, $329 for a new smartphone , 15% higher than today and $10 higher than the previous peak of $318 in 2021.
Data provided by Statista also indicates that smartphones will see the highest price increase among all IT devices. Laptops, for example, will increase in price by 6.6% during this period, going from an average cost of $706 in 2024 to $753 in 2029. And as for tablets, the average cost of such a device will rising by only 3% to reach $315 in 2029. In contrast, digital cameras and VR headsets will maintain their average prices unchanged, and desktop PCs should even get cheaper, by 1% on average, through 2029.
The smartphone industry will grow by $100 billion in the next five years
By the end of this decade, it is predicted that there will be no less than 6 billion smartphone users globally, who will spend an average of $40 more on such a device than they do now . If these predictions come true, the industry should enjoy significant growth by the end of 2029.
Statista expects the smartphone industry to generate no less than $562 billion in revenue by 2029, nearly $100 billion more than it currently does. And China, the largest market for smartphones, will be responsible for a quarter of those revenues, $137 billion, more than the United States and India combined.
Last but not least, the prices of “made in China” smartphones will exceed the global growth rate, these devices will have average purchase costs 40% higher by the end of this decade.
Source: Stocklytics.com
Source: www.go4it.ro
