Thinking of buying that smartphone you’ve been dreaming of but putting it off, hoping that prices will come down or there might be some offers coming up? Or maybe you’re that iPhone fanboy hoping that the company will cut prices now that it is being manufactured within India?
Chances are, you might just end up getting disappointed.
The average cost of a smartphone device globally is set to increase by another 3 per cent this year to cross Rs 30,000 this year. And the increase is forecast to be another 5 per cent next year, according to telecom consultancy Counterpoint Research’s Market Outlook Report released recently.
Mind you, these are only global average prices, considering that many premium phones, especially the foldable ones from certain brands, run upward of Rs 1.5 lakh.
The reasons range from the distinct premiumisation trend seen in mobile customers, especially post the pandemic. Customers, especially youngsters, don’t want to settle for a basic internet phone that can just about function—they want the branding and the plethora of features ranging from camera specs to speed and storage.
Technology is another major factor. The transition to 5G pushed phone makers to substantially upgrade the hardware, and the advent of generative AI demanded enhanced computing powers, including more powerful chips and other components.
For instance, in the first six months of this year, sales of high-end smartphones (those priced Rs 80,000 rupees and above) surged by 18 per cent. Mind you, this does not include the iPhone 16 onslaught, which hit markets only in September (and ironically, sparked off a spike in the sales of its previous year’s model, the iPhone 15, particularly in markets like India).
Even Android smartphones, which were considered affordable compared to Apple, are seeing an uptick. When Chinese giant Xiaomi released its flagship smartphone, the Xiaomi 15, armed with the latest Snapdragon 8 Elite chip, along with Qualcomm Oryon CPU and Hexagon NPU, it was priced at nearly Rs 6,000 higher than the Xiaomi 14.
“This trend indicates signals that the upward momentum in the average selling price is likely to persist as more brands innovate and enhance their offerings with cutting-edge technology,” said the Counterpoint report.
The fact of the matter is that the cost of materials that go into a smartphone is simply on the rise. Manufacturers, as well as chipmakers, are pouring massive amounts of money into building more powerful system-on-chips (S-o-C) capable of AI features, and this is going to reflect even further in prices come next year, according to Counterpoint. To cut to the chase: stop waiting; buy that dream phone NOW!