Average cell phone price rose 10% due to 5G

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The average amount spent on smartphones rose globally by approximately 10%, according to a survey by Counterpoint Research. According to the company, the increase is due to the adoption of 5G in more smartphones, in addition to the drop in sales of cheaper devices.

According to the survey, only Latin America recorded a drop in the average sales value of smartphones, with the average standing at US $ 166 in the second fiscal quarter of 2020. The rest of the world saw increases of up to 13% over the same period last year.

The research indicates that several reasons led to the price growth, but one of the main factors is 5G. According to Counterpoint, handsets with the new network standard contributed 10% of total cell phone sales in the second fiscal quarter of the year, but yielded 20% because of the higher sales value.

China was the country that most contributed to the increase in the average sale price of cell phones. Asian power was responsible for 72% of the global revenue from 5G devices.

Effects of the pandemic

The pandemic also affected sales of cheaper cell phones, according to Counterpoint, which influenced the average selling price of cell phones. The firm points out that entry-level smartphones are often sold on a large scale at physical retailers, which ended up closing their doors because of the coronavirus.

Globally, smartphone sales fell 23% compared to last year. The premium handset segment fell about 8%, as did the overall industry revenue. In all, manufacturers collected 15% less during the second fiscal quarter of 2020 compared to last year.

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