There crisis of memories is transforming the smartphone market. The latest shipping data confirmed a collapse for the sector. A new report from Counterpoint highlights another interesting element.
In the third quarter of 2026The global turnover of smartphones is grew by 3% year-on-yearreaching $114 billion, thanks to rising prices and a trend toward higher-end products, which offset a 19% year-over-year drop in shipments.
At the same time, the average selling price (ASP or Average Selling Price) is increased by 27%reaching $442. Also in this case the contribution of the high-end models is evident.
In essence, fewer and fewer smartphones are being sold (especially low-cost ones) but the revenues for producers are increasing, with an ASP showing record growth. Naturally, the increase in turnover does not translate into an increase in profits for producers. The increases on components, in fact, impact margins.
How the market changes in terms of revenues, ASP and shares
The graphics shown below, released by Counterpoint, show some very interesting details. Applefor example, has the 50% of revenues of the sector, highlighting a growth of 6 points compared to the same quarter of last year. Samsunghowever, has the 19%up 2 points. Also worth mentioning is theincrease in ASPfor all the main brands on the market, with Apple recording an increase of $161. The third graph concerns the market shares which, as we have already seen in recent days, see Samsung and Apple tied in the lead while the Chinese brands are far behind.
Senior analyst Shilpi Jain said:
“The smartphone market is increasingly facing a trade-off between volume and value. While higher average selling prices (ASP) have helped cushion the impact of declining shipments on revenue, this does not necessarily translate into profitability. As rising memory costs continue to squeeze margins, manufacturers are increasing pricesi, reducing marginal SKUs (inventory management units) e giving priority to flagship products and strategic markets. The entry-level segment is particularly vulnerable, as there is little room to absorb higher costs without compromising margins. For manufacturers, the biggest challenge going forward will not only be defending shipping volumes, but also protecting margins by keeping devices affordable.”
