Surprisingly, cell phones are more expensive. Their average selling price in 2018 increased by 9% and this was accompanied by a 4% drop in sales.
These are data from the report by CounterPoint, which points out that the drop in sales added to the rise in prices meant for manufacturers an increase in revenue of 5%. The latest additions to ‘premium’ phones, such as the materials used, cameras with multiple lenses, curved screens, more powerful processors or the introduction of artificial intelligence, are partly responsible for the increase in the price of mobile phones.
According to the report of this consulting firm, since the arrival of iPhone X, the first to reach a price of almost one thousand dollars, has been followed by other models of Apple and also the best smartphones that use Android operating system.
But this average price increase of 9% is not only due to the high-class smartphones. However, the price of mid-range smartphones has also risen, due to the transfer of features initially available in high-end devices, such as multi-lens cameras, retractable camera systems or the front camera concealed on the screen.
However, mobile phone sales fell by 4% in 2018. And the trend in 2019, according to CounterPoint, seems to continue, with the decline in premium sales in the first quarter of this year, following the decline in Apple sales. Apple sales declined 20% in the first quarter, which resulted in a global decline of 8% on top-of-the-range mobile phones. And despite falling sales, revenue remains positive. Higher prices allowed manufacturers to achieve 5% higher revenues in 2018 than in the previous year.