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Smartphone price hikes are likely to get worse before it gets better, with the average selling price of smartphones in Australia set to reach new heights. A new report published by industry analyst Omdia forecasts that price will hit $1,253.
This figure spans everything from budget-friendly handsets like the Samsung Galaxy A37 to mid-rangers like the Google Pixel 10a to top-of-the-line models like the Apple iPhone 17 Pro Max.
Globally, the report forecasts the smartphone average selling price (ASP) will rise from USD$467 in 2025 to USD$565 in 2026. According to the firm, this jump – a 21% increase – would mark both an all-time high for both yearly growth and value across the industry.
If you zoom in on Australia specifically, Omdia found the smartphone ASP increase from USD$755 in 2024 to USD$775 in 2025. In 2026, that figure is forecast to grow to USD$872. That translates to $1,085 in 2024, $1,113 in 2025 and $1,253 in 2026 in Australian dollars.
This means that compared to the global average of 21%, the selling price for smartphones in Australia will only see an increase of approximately 12%.
These higher prices are naturally expected to bite into volume, with Australian smartphone shipments forecast to slip from 7.1 million in 2025 to 7 million in 2026.
Speaking to WhistleOut Australia, Omdia senior research manager Jusy Hong said that due to worsening profitability caused by soaring memory prices, smartphone vendors are now focusing on improving the efficiency of their product lines. That means scaling back and culling lower-end models, avoiding price competition and even reducing marketing spend.
“This is also acting as a negative factor for new upgrades and changes in smartphone hardware,” he said.
Once memory price increases halt and new structures become standardised, Hong expects a return to a more familiar landscape for consumers.
“While smartphone price reductions may not occur immediately, consumers can anticipate positive factors such as the restoration of product diversity, new features, and the resumption of competition among smartphone vendors,” he said.
Fergus Halliday
Digital Content Editor
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