The global smartphone market is witnessing a shift towards expensive devices, with revenue growing despite a sharp decline in shipments as rising memory costs and demand for premium models push up prices.
Global smartphone revenue rose 3% year-on-year to $114 billion in the September quarter of 2026, even as shipments declined 19%, according to Counterpoint Research’s latest Market Monitor Service. The average selling price (ASP) of smartphones increased 27% to a record $442 during the quarter.
The rise in revenue was driven by premiumisation, a shift towards higher-priced models and increasing memory costs. Smartphone makers are also raising prices to offset the impact of expensive components.
Why is smartphone revenue growing despite falling shipments?
Revenue depends not only on the number of smartphones sold but also on the price at which they are sold. While fewer devices were shipped during the quarter, higher prices helped companies generate more revenue.
The growing demand for premium smartphones and a shift towards higher-value models supported average selling prices. Memory cost increases also elevate prices across different segments.
Higher revenue does not necessarily mean higher profits, though. Smartphone makers are facing pressure on margins as memory and other component costs rise.
How did major smartphone brands perform?
Apple recorded its highest ever September-quarter revenue, with a 17% year-on-year growth. The company captured 50% share of global smartphone revenue, while its average selling price rose 19%. Demand for the iPhone 17 series and early traction for the iPhone 18 Pro series supported its performance. Apple's shipments remained nearly flat, making it one of the most resilient major brands in the market.
Samsung ranked second with a 19% share of global smartphone revenue. Its revenue increased 14%, while its average selling price rose 21% to $367. The company continued to lead global shipments with a 22% share. The performance was supported by higher prices across its Galaxy A series and stronger contributions from premium devices such as the Galaxy S26 Ultra and Z Fold8.
Xiaomi’s revenue remained flat as higher average selling prices offset declining shipments. The company shifted its focus towards mid-range and upper-mid-range smartphones.
OPPO and vivo, however, reported revenue declines of 26% and 22%, respectively, as falling shipments outweighed gains in average selling prices.
What lies ahead for the smartphone market?
Counterpoint Research expects global smartphone revenue to contract in the December quarter of 2026, as shipment declines outpace growth in average selling prices. For 2027, higher memory costs are expected to continue putting pressure on smartphone makers.
Companies are likely to raise prices further, reduce the number of models and focus on premium devices. Shipments are expected to decline at a slower pace than in 2026, while higher average selling prices could support revenue growth. The report expects cost relief only in 2028, when smartphone makers may use savings to improve devices rather than reduce prices.
