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Report: Average selling price of a smartphone in North America jumped $119
- The average smartphone cost jumped by $119 from Q1 2022 to Q1 2023.
- That makes the cost a record high of $790.
- Unfortunately, the overall market declined by 11.2%, meaning people spend more but buy less.
In the world of Android phones, you can get something at pretty much any price point you want. Even $100 can get you something usable. However, statistics show that people are increasingly choosing to spend more money on a phone than ever before, and a new report backs up that finding.
A new report from Canalys shows that the average smartphone cost in North America increased significantly over the past year. In Q1 2022, a smartphone’s average selling price (ASP) was $671. In Q1 2023, that price jumped by a whopping $119 to a total of $790. This is a record high.
Simultaneously, the overall smartphone market is in decline. Shipments of smartphones dropped by a whopping 11.2% year-over-year when comparing Q1 2022 to Q1 2023. In other words, Canalys’ report suggests people are buying fewer smartphones overall, but when they do buy one, they spend more on it than ever before.
To no one’s surprise, the leader of this change is Apple. In North America, Canalys estimates Apple owns 59% of the smartphone market, an increase of 2%. Samsung, coming in second, is trailing behind at just 23%, representing a very scary drop of 25% year-over-year. Meanwhile, Motorola lands in third place with just 7%, with a terrifying drop of 40% YoY.
There is some good news for the world of Android, though. Google is now in fourth place with 4% of the North American market, a very healthy jump of 20% compared to last year. Finally, TCL comes in fifth place with 3% of the market.
Average smartphone cost rising: What does this mean for you?
These numbers represent a changing market. Smartphone manufacturers understand that you are holding onto your phone for longer, thus buying less frequently. In response, smartphones are getting more expensive. After all, if they can’t get you to upgrade every year or two, they will need to charge you more to make up the difference.
We expect the most prominent brands to up the prices of their flagship smartphones. The Galaxy Z Fold 5 and Galaxy Z Flip 4 are the next big releases in the Android world and could be the first to see price jumps. The iPhone 15 series will likely be more expensive as well, and we wouldn’t be surprised to see the Pixel 8 series jump up, too.