People just had other priorities when it came to spending money.
Now, it’s not certain when sales volumes might be rolling back to those pre-2020 levels, but there’s a country where people are spending more on phones. They’re spending the most on phones, to be precise.
That’s South Korea: Samsung’s fellow countrymen are leading the spending game, setting up a rosy future for the Galaxy S and the Galaxy Z devices.
According to a new report from market research firm TechInsights, South Korea, Japan, and the US topped the charts for smartphone Average Selling Price (ASP). TechInsights reckons it’s the shiny (and expensive) Galaxy Z foldables that are driving up the ASP in South Korea, and they predict this trend will keep climbing till at least 2029.
What’s ASP?
Average Selling Price (ASP) refers to the average price at which a particular product, in this case smartphones, is sold over a specific period of time (like a month or a quarter). It’s a key metric used by companies and analysts to gauge the market dynamics and consumer behavior within a given industry.
For smartphones, ASP is calculated by dividing the total revenue generated from smartphone sales by the total number of smartphones sold during that period. This provides an indication of the price point at which smartphones are being purchased on average.
Understanding ASP is important because it reflects changes in consumer preferences, market trends, and product offerings.
Japan used to be number one
Japan used to be the top dog in smartphone ASP until 2020, but South Korea swooped in and took the crown in 2021. Meanwhile, the UK’s coming up the ranks, expected to beat the US this year and land in third place, thanks to all those iPhone fans upgrading to the newest model available.Still, the US ain’t giving up that bronze medal without a fight—set to reclaim its spot in the next few years. Overall, the global smartphone market is gearing up for a modest 3% growth in 2024.
China, India, and the US are gearing up to lead the charge in smartphone growth, expected to rake in nearly half of global smartphone revenue by 2024. India might not be topping the charts in average selling price (ranked a humble 71st place), but with a massive population, it’s a goldmine for smartphone makers. No wonder Samsung’s making serious moves there, reigning as the top dog in India’s smartphone market in Q1 2024.