Premium smartphones are still gaining ground globally, but that does not mean phones are becoming easier to afford. Counterpoint Research says global sales of phones with a wholesale average selling price of at least $600 grew 5% year over year in the first half of 2026, while IDC reported that total worldwide shipments fell 7.4% in the second quarter. AI is part of the buying conversation, particularly in India, yet price and value remain important there too.
The available 91mobiles search excerpt for the exact-title reseller article, dated October 2, 2026, describes demand amid shifts toward higher price bands and smartphones’ growing role in daily life. The article page returned 404, so its interview details and the identity of the reseller could not be verified. The broader market figures below provide context, but they should not be treated as the reseller’s confirmed statements.
Are premium smartphones still in demand?
Yes, by share and unit growth in the global market. Counterpoint Research defines premium smartphones as devices with a wholesale average selling price of $600 or more. It reported that this segment’s unit sales rose 5% year over year in the first half of 2026, and premium phones accounted for a record 29% of global smartphone sales during that period. Premium share was 25% in the first half of 2025 and 20% in the first half of 2022. Counterpoint Research’s premium smartphone market data measures global sales, not demand in any single country.
That resilience sits alongside a weaker overall market. IDC reported 276.3 million worldwide smartphone shipments in Q2 2026, down 7.4% year over year. Apple shipped 55.7 million phones, up 14.9% year over year; IDC attributed part of that momentum to iPhone 17. Shipments are devices sent into distribution, not a direct measure of purchases by end users. IDC’s worldwide smartphone market figures therefore offer a different measure from Counterpoint’s sales figures.
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The contrast suggests that premium phones can gain share while the broader market contracts. It does not establish that every premium brand or model is growing, or that consumers everywhere are choosing expensive devices over more affordable ones.
How much does AI matter when buying a new phone?
AI is becoming a purchase consideration, but the available figures do not show that it is the deciding factor for every buyer. In a report announcement published April 29, 2026, Flipkart and Counterpoint Research said 89% of surveyed Indian users reported that AI features influence their purchase decisions. The finding is specific to India and reflects responses reported by the companies, not global buyer behavior. The Flipkart and Counterpoint announcement also highlights camera capability and performance as considerations.
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“AI smartphone” can mean different things in marketing. Gartner’s definition is more specific: a GenAI smartphone has a built-in neural engine or neural processing unit (NPU) capable of running small language models. That hardware definition does not establish which features a particular phone offers, whether they work offline, or whether they will be useful to a given buyer.
Gartner’s September 2025 forecast projected 559.0 million GenAI smartphone units and $393.3 billion in end-user spending for 2026. Those are forecasts, not confirmed 2026 shipment or spending results. Gartner analyst Ranjit Atwal also cautioned that most users still rely on text or touch for tasks, with voice interaction remaining limited in scope. Gartner’s forecast and definition are useful context, but they do not show that AI alone is driving premium demand.
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Are smartphone prices going up?
IDC’s September 8, 2026 page forecast a 27.6% increase in the average selling price of smartphones for full-year 2026, to $581. It also forecast a 16.7% decline in worldwide shipments for the year. These are IDC projections, not final annual results. The $581 average covers the full smartphone market; it should not be confused with the $600 wholesale threshold Counterpoint uses to define the premium segment.
IDC linked the pressure to rising memory costs. In the same market analysis, IDC’s Nabila Popal said memory costs were up nearly 300% from a year earlier and represented over 65% of the bill of materials at the low end. This is IDC’s reported cost context, not a price increase applicable to every phone. The analysis points to particular difficulty for vendors with low-end portfolios; it does not establish what any specific manufacturer will charge. IDC’s market update labels the full-year figures as forecasts.
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What do affordability trends look like in India?
In the April 2026 Flipkart and Counterpoint report announcement, 60% of Indian users identified price or value as an important purchase driver. The same report said 33% opted for EMI to access higher-spec devices, while reported replacement cycles lengthened from approximately 3.5 to 4 years. These findings describe the Indian report’s respondents; they should not be generalized to other markets or treated as a universal replacement schedule.
The figures show a tension rather than a simple move toward costlier phones: Indian respondents reported interest in AI and higher specifications, while also placing importance on value, using installment financing, and keeping phones longer. Counterpoint Research Director Tarun Pathak described the market as putting growing emphasis on camera capabilities, performance and AI-driven features. The announcement also discussed refurbished alternatives, but it does not establish current prices, terms, or availability for any specific device or financing offer.
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Should you trade in your old phone or keep it longer?
The longer replacement cycle reported in India makes it reasonable to assess whether an upgrade solves a real need, rather than treating a new feature as sufficient reason to replace a working phone. The available market data does not determine whether a trade-in, buyback, refurbished purchase, or continued use is best for an individual; that depends on the phone’s condition, local offer terms, and the features the buyer actually needs.
- Consider replacing it when a new phone materially improves a priority such as camera performance or processing, and the total cost fits your budget.
- Keep it longer if it still meets your needs and the upgrade would mainly add features you are unlikely to use.
- Compare financing carefully if installments make a higher-spec device accessible: the India report establishes that some respondents use EMI, not that a particular plan is affordable or advantageous.
- Check trade-in or refurbished options locally before deciding, since the report does not verify any named service, offer, rate, or eligibility condition.
For any AI-led upgrade, look beyond the label: check what the phone can do, whether the relevant processing happens on-device, and whether those capabilities matter in your everyday use. The cited market forecasts and survey findings do not test phones or compare their reliability or useful life.
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