Average selling price of phones went up 7% in Q3, a new record

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Do recent smartphones feel more expensive? It’s more than just your gut feeling, data by GfK shows a record rise in the average selling price (ASP) of phones for the third quarter of this year - it's up by 7% compared to the same period last year.

Global demand rose moderately (up 3% YoY) to a total of 367 million units – the highest number for this period of the year. This growth was driven by Latin America (+11%) and Central and Eastern Europe (+9%) as traditionally strong markets are seeing a decline.

Western Europe was the destination for 30.9 million phones, down 7% compared to last year. But maker revenues are up as the ASP went up 11%. One in eight smartphones sold over the three month period cost above $900. Last year only one in sixteen cost that much.

Compare that to the Central and Eastern parts of Europe. In total, they bought 22.3 million units (up 9%) with the ASP going up a whopping 26%! That shows a massive shift towards buying higher-end devices in the region.

Smartphone sales 3Q 2017 vs. 3Q 2016	Units sold (in million)			Sales value (in billion USD)
	3Q17	3Q16	Y/Y % change	3Q17	3Q16	Y/Y % change
Western Europe	30.9	33.2	-7%	13.7	13.2	4%
Central and Eastern Europe	22.3	20.5	9%	5.4	4.3	26%
North America	49.3	50.0	-1%	19.1	18.9	1%
Latin America	27.8	25.1	11%	8.8	7.8	13%
Middle East & Africa	45.2	41.9	8%	10.7	10.2	5%
China	117.0	111.9	5%	38.3	31.9	20%
Developed Asia	16.4	17.6	-7%	10.3	11.3	-9%
Emerging

Asia 57.7 55.2 5% 10.5 8.7 21% GLOBAL 366.6</b</td> 355.4</b</td> 3%</b</td> 116.8</b</td> 106.3</b</td> 10%</b</td>

Latin America sales were up 11%, driven mostly by demand in Brazil. The Middle East and Africa also saw rising sales and GfK believes that Sub-Saharan and South African countries will continue to drive demand as smartphones displace the still-popular featurephones in the region.

Even China, home to many budged-friendly phone brands, saw a significant 15% increase in ASP on the back of rising demand – 117 million phones were sold during the quarter. Other Asian countries showed even stronger demand with Malaysia and Bangladesh seeing sales rise 25% and 22% respectively.

Things look different in South Korea – sales dropped 15% to 16.4 million units and GfK lowered its 2017 sales estimate.

Below is GfK's forecast for the full year 2017.

Smartphone sales 2017 vs. 2016	Units sold (in million)			Sales value (in billion USD)
	2017 sales	2016 sales	Y/Y % change	2017 sales	2016 sales	Y/Y % change
Western Europe	126.7	131.0	-3%	56.6	53.5	6%
Central and Eastern Europe	85.2	78.0	9%	21.0	16.8	25%
North America	201.1	198.5	1%	80.6	77.5	4%
Latin America	115.4	105.9	9%	36.2	30.9	17%
Middle East & Africa	176.8	168.9	5%	41.9	42.1	0%
China	464.3	448.5	4%	154.3	133.1	16%
Developed Asia	70.1	72.9	-4%	44.7	46.1	-3%
Emerging Asia	238.6	214.5	11%	43.0	34.5	25%
GLOBAL	1,478.2	1,418.2	4%	478.3	434.5	10%

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