As December 2024 approaches, we gear up for a new year. This year, AI-featured phones created buzz but remained limited. In 2025, we might see new technologies emerging.
However, buying a smartphone next year will likely be more expensive than this year due to several reasons. Advanced component prices will rise, the shift to 5G, and the demand for AI features will drive up prices.
According to Counterpoint Research, the global average selling price for smartphones is projected to rise by 3% in 2024 and 5% in 2025. The rising demand for premium smartphones—equipped with powerful processors, impressive cameras, and AI features—is a key driver.
The integration of generative AI in smartphones is rapidly advancing, making phones more premium. Consumers appreciate features like generative AI, prompting manufacturers to invest in processors with enhanced CPU, NPU, and GPU capabilities.
This has contributed to price hikes. As we enter the AI smartphone era, trends favoring generative AI features will rise. More powerful processors—costlier than usual—are required to accommodate these features.
Source: aajtak
It's not just hardware; companies are extensively working on software due to AI features. The complexity of software coupled with AI algorithms will also contribute to price increases. Nevertheless, these prices will yield products that are more beneficial to consumers.
In essence, consumers in 2025 will need to spend more on premium smartphones due to emerging features. Consumers will have to decide for themselves how useful these features truly are in real life, as many current AI features do not serve practical purposes for everyone.
Initially, these features might be appealing, but over time, their utility might not be memorable. Consumers need to discern which features are worth the investment when purchasing a smartphone.
