The End of the Cheap Smartphone Era: Prices Surge and Market Shifts

Yet another bleak global smartphone market report and forecast is out, revealing even worse news for consumers than a predicted decline in mobile device sales. According to IDC (International Data Corporation) analysts, an entire market segment is expected to essentially perish, leaving millions with limited options and potentially higher costs for future phone purchases.

The 'Cheap Smartphone Era' is Over

If you've noticed fewer low-cost smartphone models fitting your budget recently, you're not alone. The average selling prices (ASPs) of smartphones worldwide have ballooned and are expected to continue rising through the end of this year and next. While premium devices like the Samsung Galaxy S26 series, the Z Fold 8 Ultra, and Google's Pixel 11 family are contributing to a predicted 27.6 percent surge in ASP by 2026, even the most affordable phones haven't escaped industry-wide price hikes due to rising component costs.

The sub-$100 segment lost close to 60 percent of its Q2 2025 global volume by 2026, with an even “faster fall” expected in the second half of the year.

Rising Prices, Shifting Market

Smartphone prices are only expected to “stabilize” in 2027 or 2028, meaning the “days of the cheap smartphone” are numbered. Manufacturers are likely to soon find it impossible to sell phones for under $100 or even $150.

Good News for Some Companies

An increase in ASP is theoretically beneficial for smartphone vendors, allowing them to generate higher revenues with lower shipment figures. However, this won't be true for all companies, and smaller.