$114 billion... Smartphone sales in 3 months

Smartphones generated $114 billion in global sales during the third quarter of this year (July to September), marking a 3% annual increase despite a 19% decline in shipments.

Citing research firm Counterpoint, Al-Sharq Al-Awsat reported that rising prices and increased sales of high-end phones supported revenue growth, with the average selling price jumping 27% to $442, a wholesale-price-record level. However, higher revenues do not necessarily translate into improved profits, as memory chip costs continue to rise and pressure corporate margins, particularly in the budget smartphone segment.

In a report published last September, the firm noted that retail prices for phones circulating in markets had risen by an average of 15% since the beginning of 2026, while prices for new models increased by 25% compared to their counterparts a year ago.

Based on data from more than 4,000 models, the report stated that price hikes affected more than 40% of available models, exceeding 1,600 units.

India led the increases at 21%, followed by the Asia-Pacific region at 19%, and the Middle East and Africa at 18%. Increases were lower in China, Europe, and the United States, at 10%, 7%, and 5%, respectively.

Companies have resorted to adjusting some device specifications to curb costs by reducing storage capacities and downgrading camera specs, alongside reintroducing 4G-supported phones in certain price segments.

Apple captured 50% of market revenue after its phone revenues rose 17% and average prices increased 19%, while shipments remained virtually stable.

Data released by Counterpoint last October showed that iPhone 18 Pro sales rose 3.1% during the first three weeks of its launch compared to the same period during the iPhone 17 Pro series launch.

Samsung ranked second with a 19% revenue share, up 14%, while leading in shipments with a 22% share. Its average phone price rose 21% to $367.

A report by the firm published last September indicated that Galaxy Z Fold 8 series sales rose by about 8% during the initial launch period compared to the previous generation.

The Galaxy Z Fold 8 accounted for approximately 57% of the series’ sales during the first two weeks, according to the firm’s estimates, despite supply shortages in some stores.

Xiaomi’s revenues remained stable, offsetting shipment declines with higher prices, while Oppo and Vivo revenues fell 26% and 22%, respectively, despite their focus on profitability and reduced activity in non-core markets.

The firm predicted a decline in revenues during the fourth quarter (October to December), following growth for the full year 2026, followed by accelerated growth in 2027 driven by prices, despite shipments continuing to decline at a slower pace.

The firm does not expect cost relief before 2028, and companies may instead choose to upgrade devices rather than lower prices.