Global smartphone revenues climbed to a record US$135 billion in the fourth quarter of 2025, rising 7% year-on-year as higher prices and strong demand for premium devices offset ongoing pressure on shipments.

Counterpoint Research said the quarter marked the first time the average selling price (ASP) of smartphones crossed the US$400 mark, driven by consumers increasingly opting for higher-end models and rising component costs for manufacturers.

The analyst house said premiumisation remained the main growth engine for the market, with vendors benefiting from consumers upgrading to more expensive devices despite shortages of memory chips pushing up production costs. Demand for silicon from AI servers and accelerators has tightened supply, feeding through into higher handset prices.

Counterpoint senior analyst Shilpi Jain said the combination of higher ASPs and resilient consumer demand delivered a “positive quarter” for the industry. “Consumers continued to upgrade to higher-priced devices in both developed and emerging markets, where year-end promotions, financing options and trade-in offers helped drive value growth,” she said.

Apple was the clear standout, delivering its strongest fourth quarter since 2021 and generating US$76 billion in revenue, up 11% year-on-year. Research director Jeff Fieldhack said growth was largely driven by the iPhone 17 series, with the Pro Max variant posting the strongest year-on-year performance. Demand remained strong across North America, Latin America and Asia-Pacific.

Apple accounted for 57% of total smartphone revenue in the quarter, up from 54% a year earlier. Samsung followed in second place with an 11% share, unchanged year-on-year, while Oppo and Vivo each captured 5%. Xiaomi accounted for 4% of total revenues.

Looking ahead, Counterpoint warned that rising component costs could weigh on volumes in 2026. Research director Tarun Pathak said ASPs are expected to continue climbing as premiumisation deepens and demand grows for AI-enabled features, but elevated memory prices and broader cost pressures will likely squeeze shipments. “Vendors will increasingly need to focus on value growth

and portfolio optimisation rather than chasing volume,” he said.