Chinese smartphone manufacturers such as Huawei, Xiaomi, and Oppo are known for their aggressive pricing, offering high-spec smartphones at low prices, making them especially attractive in emerging markets where cost is a key factor. However, the situation may change in the coming years, as the average price of smartphones made in China is growing by double digits.
According to data presented by Stocklytics.com, the average price of smartphones made in China is expected to rise by about 40% by the end of 2010, which is three times the rate of price growth in the global smartphone market.
The price difference between smartphones in the US and China is narrowing
While Samsung and Apple dominate the smartphone market, Chinese rivals Xiaomi, Oppo and Vivo have made great strides over the years and now command a significant share of global smartphone sales. Together, the three smartphone vendors shipped more than 180 million units in the first half of 2024, an increase of 14% from the same period last year.
One of the biggest factors behind the surge in sales is affordability, which has attracted millions of users in China and abroad over the years. However, the days of Chinese-made smartphones being sold at much more affordable prices are coming to an end, with prices set to rise by significant double digits over the next five years, according to a study by Statista Market Insights.
Average price per unit (US$ thousand) for the US, China, and global smartphone markets from 2018 to 2029.
Source: Statista Market Insights
Statistics show that the average price per device in China’s smartphone market has fallen by 12% in the past six years, from $310 in 2018 to $270 this year. The US market saw exactly the opposite situation, with the average smartphone price increasing by 13% to $430 during this period. This is four times the global market price increase of 3% over the past six years.
However, Statista predicts that the price gap between the US and Chinese markets will narrow over the next five years. According to Statista, the average price per unit in China’s smartphone market is expected to rise by 40% to reach $380 by 2029. Moreover, this means that the price in the Chinese market will jump three times as much as the world market and ten times as much as the world market. US market. The average price of a smartphone in the global market is expected to increase by 13% over the next five years, reaching $330. The US market will follow suit, with a 4% price increase and an average price of $450 per unit by 2029.
Xiaomi 14 Ultra smartphone.
Source: Xiaomi
China’s smartphone sales are growing seven times faster than the US
Sales revenue in China will grow much faster than in the US, as Chinese smartphones are becoming more popular around the world, with average prices increasing by a whopping 40%. According to Statista, sales of China’s smartphone industry are expected to reach $105.5 billion in 2024, and this figure is expected to grow by 30% to reach $137.4 billion by 2029.
Meanwhile, the US market’s growth rate is expected to shrink sevenfold, with smartphone sales revenue expected to increase by only 4% to $63.5 billion over this period. In comparison, global smartphone sales are expected to increase by 20% and reach $562 billion by the end of this decade.
Statistics show that China will generate one-fifth of global smartphone sales by 2029, an increase of 2% from this year. In contrast, the US market share is expected to shrink from 13% to 11% over the next five years.
