Smartphones are becoming a necessity in our daily routines with companies making quite a lot of money out of this business.
A sudden rise in smartphone prices was noted in the third and fourth quarter of 2017, when the figures jumped up in quick succession.
GfK’s (market research company) data shows a 11% yearly increase in the revenue generated by the smartphone sector, with consumers spending almost $363 on average for a smartphone.
Record Increase in Smartphone Prices
Data analysts report a record rise in smartphone prices during the past 6 months, with an interesting detail: revenue figures rose up by 11% even when smartphones sold in Q4 didn’t go higher than 1 percent globally.
Regional Price Hikes
To divide these figures according to regions, Central and Eastern Europe were ahead of everyone with 7% increase in unit sales and a notable 28% increase in revenue. While Western Europe and China witnessed slowing unit sales by 3%, revenue figures still increased by 17 percent in the regions.
Why Are Smartphone Prices on The Rise?
Speaking of the reasons, GfK considers the new sensation of bezel-less phone designs as a key factor behind this price hike. In 2017, smartphone unit sales witnessed an increase of 3 percent overall. This sums up to a total of 1.46 billion (9 percent revenue increase).
According to the analysts, smartphone manufacturers now need to look out for other ways of customer retention instead of just playing around with the design section.
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