Global smartphone wholesale average selling price rose 10% year over year in the second quarter of 2020, according to Counterpoint Research. That does not mean every phone’s retail price went up 10%, or that smartphone prices rose by that amount across all of 2020. The increase was an average shaped by which phones sold, not a universal price change.
What the 10% figure measures
Counterpoint’s September 25, 2020 analysis put global smartphone wholesale average selling price (ASP) in April–June 2020 10% above the same quarter in 2019. ASP is an average across devices shipped; it is not the price tag or checkout price of every model. The report also estimated that global smartphone shipments fell 23% year over year and industry revenue fell 15% in Q2. Those figures describe different measures and are not contradictory: fewer phones sold, while the average value per shipped phone increased. Counterpoint’s Q2 2020 ASP analysis
Why the average went up
Cheaper phones made up less of the market
Lockdown closures disrupted offline stores, an important sales channel for entry-level phones. Economic uncertainty also led some lower- and middle-income consumers to delay discretionary purchases. When fewer low-priced devices are sold, they account for less of the shipment mix, which can push the average upward even if individual phone prices do not change.
Premium phones held up better
The premium segment declined 8% year over year in Q2, a smaller drop than the wider market. Apple shipments rose 3% and iPhone revenue rose 2% year over year, while shipments for most other manufacturers fell, according to Counterpoint. Premium devices therefore carried more weight in a weaker overall market.
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5G phones added to the mix effect
5G phones represented 10% of global handset shipments but 20% of handset revenue in Q2 2020, indicating that their average value was relatively high. China accounted for 72% of global 5G handset revenue, and its smartphone ASP rose 12% year over year. The concentration of 5G sales in China made that market especially influential in the global result. Counterpoint attributed the increase to resilient premium phones, reduced demand for lower-priced devices, and stronger 5G sales, particularly in China. Counterpoint’s Q2 2020 analysis
Some consumers upgraded
Counterpoint also noted that phones had become more central to work, study, productivity, gaming, and entertainment during the pandemic, prompting some consumers to upgrade. That helped support demand for more capable devices; it does not establish that the pandemic caused every phone’s retail price to rise.
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Why this was not a 10% increase for all of 2020
The Q2 ASP comparison covers one three-month period. Counterpoint’s separate calendar-year review found that global smartphone shipments fell 10% in 2020, with a rebound in the second half as lockdowns eased and pent-up demand was fulfilled. Shipment volume is not ASP or retail price, so the annual decline cannot be read as an annual price change. Counterpoint also said lower 5G device prices and operator tariffs helped support adoption and market recovery; that does not mean 5G universally raised consumers’ prices. Counterpoint’s 2020 market review
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the regional and US figures add
Counterpoint reported that Latin America was the exception among regions to the Q2 ASP increases, while China’s ASP rose 12%. For the United States, it found 5G phones grew from 3% of total smartphone sales in January 2020 to 14% in August. Analyst Hanish Bhatia said US 5G ASP had fallen by more than $300 over the year to $730 in July 2020. That regional observation illustrates why a global average should not be mistaken for a uniform or steadily rising price: 5G adoption can expand even as the average price of 5G phones declines. Counterpoint’s US 5G analysis
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How to read a claim about phone prices
- Check the measure: wholesale ASP, retail price, shipment volume, and revenue answer different questions.
- Check the period and geography: Q2 2020 globally is not the same as a full-year, country-specific, or current trend.
- Check the product mix: a shift toward premium or 5G models can raise an average without price increases across individual models.
- Check the source: the 10% figure is Counterpoint Research’s market estimate; it is not a government statistic or proof of a universal change at checkout.
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