Market Research firm, Strategy Analytics has revealed in its latest research that wholesale smartphone price is expected to skyrocket to $310 in 2021, a 11 percent from the $279 of 2020, the highest price since 2013 in the smartphone market.
In the new research, global smartphone wholesale revenue was tipped to grow more than 21 per cent YoY to reach it’s highest-ever value at $435 billion in 2021.
In the words of Abhilash Kumar, Analyst at Strategy Analytics:
“We forecast global smartphone wholesale price to grow +11 percent YoY at $310 in 2021, up from $279 in 2020. Global smartphone wholesale revenue is expected to grow +21 percent YoY to reach its highest ever value at $435 billion in 2021.”
He noted that the rise was driven by smartphone sales volume that will rebound at +9 percent YoY, and the higher average price point.
“This is the first time that average global wholesale price crossed the $300 mark over the past nine years. The price increase is driven by tech migration towards 5G smartphones, supply constraints due to component shortage which is leading to price hikes and new hardware innovations like foldable/flip form factor by Samsung,” Kumar said.
The price increase can also be said to be as a result of migration towards 5G smartphone use, constraints in supply occasioned by component shortage leading to price hikes together with innovations in hardware like foldable/flip form factor by Samsung.
Expensive smart phones in the range of “$600 and above” are also responsible for the exponential growth of the smartphone market, most especially driven by the hike sales of the iPhone 12 series, enriched foldable line up from Samsung, and sales of other premium devices from Chinese vendors like the OnePlus.
Linda Sui, Senior Director at Strategy Analytics while enumerating the effect products like the 9 series, Xiaomi 11 series, OPPO Reno series, Vivo X series, has on sales wrote:
“We expect the newly-launched iPhone 13 series will add to the above-mentioned factors during the fourth quarter of 2021”.
“Smartphones in the “$600 and above” price tier spurred market growth. This is driven by the solid sales of the iPhone 12 series, enriched foldable line up from Samsung, and sales of other premium devices from Chinese vendors like the OnePlus 9 series, Xiaomi 11 series, OPPO Reno series, Vivo X series, etc. We expect the newly launched iPhone 13 series will add to the above-mentioned factors during the fourth quarter of 2021. We forecast “$600 and above” price tier will grow +34% YoY by volume and +48 percent YoY by revenue, significantly outperforming the overall market and other price bands”. Sui added.