The average price of smartphones rose at record pace in Q3 last year and then again in Q4. Data by GfK shows that consumers were paying $363 on average, a 10% increase year on year. This also represents the fastest quarterly rise.

The number of smartphones sold in Q4 was almost flat – just 1% up. But the revenue from those sales rose significantly, 11% globally.

This increase was the biggest in Central and Eastern Europe where unit sales went up 7% but revenues are up 28%. In Western Europe and China, unit sales are down 3% but revenues still increased by a solid 17%.

4Q 2016 vs. 4Q 2017 Units sold (in million) Sales value (in billion USD) 4Q16 4Q17 Y/Y % change 4Q16 4Q17 Y/Y % change Western Europe 38.3 37.0 -3% 16.1 18.8 17% Central and Eastern Europe 22.6 25.2 7% 5.4 6.9 28% North America 58.7 62.0 6% 27.4 28.5 4% Latin America 33.1 35.0 6% 10.0 11.2 12% Middle East & Africa 42.6 46.2 8% 10.6 10.9 3% China 118.4 114.7 -3% 36.6 43.0 17% Developed Asia 20.3 18.5 -9% 13.9 13.2 -5% Emerging Asia 58.9 58.6 -1% 10.1 11.5 14% GLOBAL 393.9 397.2 1% 130.1 144.0 11% Source: GfK Point of Sales (POS) Measurement data in 75+ markets, monthly data to the end of November 2017, plus weekly data to 31 December 2017. Percentages are rounded.

GfK attributes this to the new breed of bezel-less phones, which started at the top of the market (but have been making their way to the mid-range).

For the full 2017, unit sales are up 3% - to a total of 1.46 billion – and the monetary increase is 9%, again indicating a rise in the average selling price.

2016 vs. 2017 Units sold (in million) Sales value (in billion USD) 2016 2017 Y/Y % change 2016 2017 Y/Y % change Western Europe 131.0 125.6 -4% 53.5 56.0 5% Central and Eastern Europe 78.0 85.2 9% 16.8 21.2 26% North America 198.2 201.3 2% 82.9 84.0 1% Latin America 105.9 115.8 9% 30.9 36.8 19% Middle East & Africa 168.9 176.5 4% 42.1 41.5 -1% China 448.5 454.4 1% 133.1 152.3 14% Developed Asia 72.9 68.5 -6% 46.1 44.2 -4% Emerging Asia 214.5 232.7 8% 34.5 42.7 24% GLOBAL 1,417.9 1,460.0 3% 439.9 478.7 9% Source: GfK Point of Sales (POS) Measurement data in 75+ markets, monthly data to the end of November 2017, plus weekly data to 31 December 2017. Percentages are rounded.

The analysts do have some good news. Developed markets are reaching a saturation point, which will push makers to focus on consumer retention and encourage innovation and differentiation.

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