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Premium phones are holding up better than the wider smartphone market, but that does not mean shoppers are unconcerned about cost. Counterpoint Research says global premium smartphone sales grew 5% year over year in the first half of 2026, while IDC reported worldwide shipments fell 7.4% in the second quarter. In India, a Flipkart and Counterpoint report points to the tension behind that split: buyers value features such as AI, but price and financing still shape decisions.
Are premium smartphones still in demand?
Yes, by Counterpoint Research’s measure. It defines premium smartphones as models with a wholesale average selling price of at least $600. In the first half of 2026, that segment accounted for a record 29% of global smartphone sales, compared with 25% in H1 2025 and 20% in H1 2022. Premium unit sales rose 5% year over year during H1 2026. Counterpoint Research’s H1 2026 findings measure global premium sales, not consumer retail prices.
The broader market was weaker. IDC reported that worldwide smartphone shipments declined 7.4% year over year to 276.3 million units in Q2 2026. Apple shipped 55.7 million phones in the quarter, up 14.9% year over year; IDC attributed part of Apple’s momentum to iPhone 17. These are shipments to distribution channels, not a direct count of phones bought by consumers. IDC’s worldwide smartphone market update also forecasts a 16.7% decline in full-year 2026 shipments and a 27.6% increase in average selling price to $581. Those annual figures are forecasts, not reported outcomes.
The contrast is consistent with a market where demand is concentrating in higher price bands while cost pressures make the overall category harder to sustain. IDC says rising memory costs are pressuring vendors and consumers. Its Nabila Popal said memory costs were up nearly 300% year over year and accounted for over 65% of bill of materials at the low end, making it increasingly difficult for manufacturers with low-end portfolios to survive. That is IDC’s assessment of the market, not a claim that every phone maker faces identical costs.
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How much does AI matter when buying a new phone?
AI is becoming a consideration, but an AI label alone does not tell you what a phone can do or whether those features are useful to you. Gartner defines a GenAI smartphone as one with a built-in neural engine or neural processing unit (NPU) capable of running small language models. In a forecast published in September 2025, Gartner projected 559.0 million GenAI smartphone units and $393.3 billion in end-user spending for 2026. These are forecast figures, not a confirmed tally of 2026 sales. Gartner’s forecast also cautions that voice interaction remains limited in scope, with most users still relying on text or touch for tasks.
In India, a Flipkart and Counterpoint Research report announcement published April 29, 2026, said 89% of surveyed users reported that AI features influence their purchase decisions. The finding is specific to that report and market; it does not establish that AI outweighs price for every buyer. Counterpoint Research director Tarun Pathak described Indian buyers as placing growing emphasis on camera capabilities, performance and AI-driven features. The Flipkart and Counterpoint report announcement also highlights price/value and brand trust as purchase considerations.
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What to check before paying extra for AI
- Named features: Check the specific capabilities you expect to use, such as photo editing, transcription, translation or writing assistance, rather than relying on a general AI claim.
- On-device processing: Find out whether a feature runs locally on the phone or depends on an internet connection and a cloud service. A built-in NPU is relevant to local processing, but its presence alone does not guarantee a particular feature or performance level.
- Access and limits: Confirm whether features are available in your country and language, whether they require an account or subscription, and whether the manufacturer sets usage limits.
- Useful life: Consider whether the device’s overall performance, camera, battery and software support meet your needs. AI capabilities are only one part of the phone’s value over time.
Are smartphone prices going up?
IDC’s September 8, 2026 update forecasts that worldwide smartphone average selling prices will rise 27.6% in 2026, reaching $581. It also forecasts a 16.7% fall in full-year shipments. Both are global annual forecasts and should not be read as actual year-end results or as a price increase applying to every model or country. IDC links the pressure to rising memory costs.
Premium market share and average selling price describe different things. Counterpoint’s 29% figure is the premium segment’s share of global smartphone sales, using a wholesale $600 threshold; IDC’s $581 figure is a forecast of the average selling price across the market. Neither tells an individual shopper what a particular phone costs at a local retailer.
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How buyers are managing affordability
The India-specific Flipkart and Counterpoint report illustrates how demand for better specifications can coexist with budget pressure. It reported that 60% of users identified price/value as an important purchase driver, 33% used EMI to access higher-spec devices, and replacement cycles had lengthened from approximately 3.5 to 4 years. These are findings from the report announcement, not universal rates for smartphone buyers worldwide.
Counterpoint also describes financing, trade-ins, buybacks and refurbished phones as ways consumers can manage the cost of upgrading. The right choice depends on the actual total cost and terms available where you live; no particular merchant offer, interest rate or eligibility rule is established by these market findings.
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Choose based on total ownership cost
- Keep your current phone if it still meets your needs and its battery, storage, security updates and reliability are adequate. A longer replacement cycle avoids spending on features you may not use.
- Trade in or sell the old phone only after comparing its net value with the convenience and conditions of the offer. Check required device condition, deadlines, and when credit is applied.
- Use installments carefully: Compare the total amount payable, fees, interest, and payment duration with the outright price. EMI can spread the cost, but it does not make a more expensive phone cheaper.
- Consider refurbished models when warranty coverage, return rights, battery condition and repair history are clear. A lower purchase price is less useful if the device has limited support or hidden defects.
What the Apple reseller insight does—and does not—establish
A 91mobiles search-result excerpt dated October 2, 2026, described premium-segment demand amid a shift toward higher-priced portfolios and noted smartphones’ growing role in daily life. The article page was not accessible, so its interview, reseller identity and detailed claims cannot be independently assessed here. The excerpt is therefore useful only as a narrow indication of the article’s stated theme, not as verified evidence for specific sales figures or an Apple-authorised reseller’s broader conclusions. The global market figures above come from Counterpoint Research and IDC, while the consumer preference figures cited here are specific to the India report.
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