average selling price

Global smartphone shipments are projected to decline by 2.1% in 2026, while average selling prices are expected to rise by 6.9%. This shift is driven by surging demand for memory chips, essential for AI technologies, which has led to component shortages and increased manufacturing costs. Entry-level phones are seeing significant bill of materials cost hikes, with further price increases anticipated. Larger players like Apple and Samsung are better positioned, while smaller manufacturers may struggle, potentially leading to component downgrades or a push towards premium models.