Average selling price of phones went up 7% in Q3, a new record
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Do recent smartphones feel more expensive? It's more than just your gut feeling, data by GfK shows a record rise in the average selling price (ASP) of phones for the third quarter of this year – it’s up by 7% compared to the same period last year.
Global demand rose moderately (up 3% YoY) to a total of 367 million units – the highest number for this period of the year. This growth was driven by Latin America (+11%) and Central and Eastern Europe (+9%) as traditionally strong markets are seeing a decline.
Western Europe was the destination for 30.9 million phones, down 7% compared to last year. But maker revenues are up as the ASP went up 11%. One in eight smartphones sold over the three month period cost above $900. Last year only one in sixteen cost that much.
Compare that to the Central and Eastern parts of Europe. In total, they bought 22.3 million units (up 9%) with the ASP going up a whopping 26%! That shows a massive shift towards buying higher-end devices in the region.
Smartphone sales 3Q 2017 vs. 3Q 2016 | Units sold (in million) | Sales value (in billion USD) | ||||
3Q17 | 3Q16 | Y/Y % change | 3Q17 | 3Q16 | Y/Y % change | |
Western Europe | 30.9 | 33.2 | -7% | 13.7 | 13.2 | 4% |
Central and Eastern Europe | 22.3 | 20.5 | 9% | 5.4 | 4.3 | 26% |
North America | 49.3 | 50.0 | -1% | 19.1 | 18.9 | 1% |
Latin America | 27.8 | 25.1 | 11% | 8.8 | 7.8 | 13% |
Middle East & Africa | 45.2 | 41.9 | 8% | 10.7 | 10.2 | 5% |
China | 117.0 | 111.9 | 5% | 38.3 | 31.9 | 20% |
Developed Asia | 16.4 | 17.6 | -7% | 10.3 | 11.3 | -9% |
Emerging Asia | 57.7 | 55.2 | 5% | 10.5 | 8.7 | 21% |
GLOBAL | 366.6 | 355.4 | 3% | 116.8 | 106.3 | 10% |
Latin America sales were up 11%, driven mostly by demand in Brazil. The Middle East and Africa also saw rising sales and GfK believes that Sub-Saharan and South African countries will continue to drive demand as smartphones displace the still-popular featurephones in the region.
Even China, home to many budged-friendly phone brands, saw a significant 15% increase in ASP on the back of rising demand – 117 million phones were sold during the quarter. Other Asian countries showed even stronger demand with Malaysia and Bangladesh seeing sales rise 25% and 22% respectively.
Things look different in South Korea – sales dropped 15% to 16.4 million units and GfK lowered its 2017 sales estimate.
Below is GfK’s forecast for the full year 2017.
Smartphone sales 2017 vs. 2016 | Units sold (in million) | Sales value (in billion USD) | ||||
2017 sales | 2016 sales | Y/Y % change | 2017 sales | 2016 sales | Y/Y % change | |
Western Europe | 126.7 | 131.0 | -3% | 56.6 | 53.5 | 6% |
Central and Eastern Europe | 85.2 | 78.0 | 9% | 21.0 | 16.8 | 25% |
North America | 201.1 | 198.5 | 1% | 80.6 | 77.5 | 4% |
Latin America | 115.4 | 105.9 | 9% | 36.2 | 30.9 | 17% |
Middle East & Africa | 176.8 | 168.9 | 5% | 41.9 | 42.1 | 0% |
China | 464.3 | 448.5 | 4% | 154.3 | 133.1 | 16% |
Developed Asia | 70.1 | 72.9 | -4% | 44.7 | 46.1 | -3% |
Emerging Asia | 238.6 | 214.5 | 11% | 43.0 | 34.5 | 25% |
GLOBAL | 1,478.2 | 1,418.2 | 4% | 478.3 | 434.5 | 10% |
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