According to the latest Counterpoint Research report, over 70% of potential smartphone buyers are altering their purchasing plans due to rising device costs. Consumers are either delaying their upgrades or switching to alternative brands to avoid higher prices.
Data shows that 63% of consumers planning to buy a phone within the next six months have noticed price increases. Awareness of these hikes is highest in China at 81%, followed by Germany at 70%, India at 66%, and the US and UK at 50%.
The report forecasts that average smartphone prices will rise by 20% by the end of 2026, with new models potentially seeing price increases of up to 30%. Consequently, buyers are increasingly waiting for major promotional events to make purchases.
Consumer behavior is shifting, as only 44% of users are willing to increase their budgets for preferred models. Meanwhile, 37% of respondents plan to delay their purchase, and 35% are actively seeking cheaper alternatives within their original budget.
The market is currently experiencing a decline in shipment volumes alongside rising prices. Manufacturers face a difficult situation where high component costs limit price reductions, while further price hikes risk alienating price-sensitive customers.
