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Android phones nearly three times cheaper than iPhone


Apple vs Android

The average price of an Android smartphone is now nearly three times lower than the average cost of an Apple iPhone, latest figures have revealed.

New data from ABI Research shows that the average selling price for Android smartphones comes in at $254 (£169).

Apple, meanwhile, revealed that the average price of an iPhone rose to $687 (£456) as part of its Q4 2014 earnings call.

That’s a big leap on the fruity firm’s average pricing from Q3, which was much closer to $600.

This is likely down to the fact that Apple launched its iPhone 6 Plus, a more expensive unit.

Apple also put a big focus on trying to upsell its 64GB and 128GB handsets through the eschewing of 32GB units, tacking on a serious premium for buyers not so keen on using a 16GB non-expandable smartphone in 2015.

Android, meanwhile, sees its average price kept consistently low by the proliferation of priced-down smartphones in the east.

China’s Xiaomi, for instance, managed an average handset price of just $220 (£146), which is low enough to keep premium handsets from dragging the average Android pricing significantly upwards.

It’s unlikely Android smartphone makers are too concerned about this low average price however. That’s because Android held 84 per cent of the smartphone OS market share back in Q3 last year.

Related: iPhone 6S release date

Whatever your views on the grand face-off between Apple and Android, it’s still clear that Microsoft is struggling to flog marked up devices.

In fact, Microsoft’s average selling price for smartphones last quarter was a paltry $45 (330) – that’s the same price as a Russell Hobbs toaster, a 64GB SD card, or an ink cartridge refill for an Epson printer. Take your pick.

Martin Turner

February 2, 2015, 8:51 pm

"It’s unlikely Android smartphone makers are too concerned about this low average price however." This seems rather unlikely. Given that the average Android smartphone maker is making a loss on every device sold, it would seem to be a huge cause for concern. Large market share x margin loss = large loss.


February 3, 2015, 11:52 am

Citation, please?

For sure, Apple's good products, high prices and excellent marketing have led to them being the most profitable company in the universe, but it is not a universal truth than Android phone makers are loss making.

From the web searching I just did, Samsung is currently breaking even from their phones, more or less; Sony and HTC are losing money; LG is making profits from their phones. Huwei don't break down where their profits come from but they make a lot of them, and they sure sell a lot of Android phones. Not saying you're wrong, as this is just misinformation from the web. Just challenging a generalisation.... :)

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