Budget smartphone prices rise faster than premium handsets

Budget smartphone prices in the UK have risen faster than premium handsets, according to analysis by Uswitch. The comparison group found that average launch prices for lower-cost models from Apple, Samsung and Google climbed 23.5% over four years.

The figures suggest sharper inflation at the cheaper end of the handset market, where average prices rose from £439 to £542. That compares with a 16.2% increase for top-tier flagship devices over the same period.

Apple recorded the steepest increase among the budget models in the analysis. Its entry-level iPhone price rose 43%, from £419 for the iPhone SE sold through 2023 and 2024 to £599 for the newer iPhone 16e and iPhone 17e.

Samsung's lower-priced Galaxy A range also became more expensive, with launch prices rising from £449 for the Galaxy A54 to £529 for the Galaxy A57. Google's more affordable Pixel A series increased from £449 for the Pixel 7a to £499 for later models.

At the top end of the market, increases were smaller on average, though prices remained much higher in cash terms. Google's latest Pixel 11 Pro XL was listed at £1,279, while Samsung's Galaxy S26 Ultra was also priced at £1,279.

Uswitch found the average price of premium flagship phones across the three brands rose from £1,149 to £1,336 over four years. That compares with UK inflation of 9.0% over the same period, meaning both budget and premium tiers outpaced broader consumer price growth.

Cost pressure

The analysis linked the latest handset price rises to higher component costs, particularly a global shortage of RAM. Growing demand for memory chips from AI data centres has added pressure to supply, raising costs for device makers.

Those higher component costs are not limited to smartphones. The same supply issues have also affected pricing in other consumer electronics, including foldable devices and games consoles, the analysis said.

Part of the increase in some smartphone prices also reflects changes to standard specifications. Several newer devices now start with 256GB of storage rather than 128GB, raising the entry price for buyers before other cost pressures are taken into account.

That shift is visible in the latest Samsung Galaxy S26 and Google Pixel 11 lines. Apple's lower-cost iPhone models also now offer more base storage than the older iPhone SE, which came with 64GB.

Refurbished market

Rising prices for new devices are drawing more attention to the refurbished handset market. Uswitch said buyers can save as much as £274 on a recent premium model by choosing a professionally refurbished device instead of buying new.

One example in the analysis was a Grade A refurbished Samsung Galaxy S26 with 256GB of storage, priced at £604.99, compared with £879 for a new one from Samsung. The gap is roughly equivalent to seven weeks of grocery shopping for one person under the study's assumptions.

The research also compared handset prices with food bills to illustrate pressure on household budgets. Based on an average weekly grocery spend of £40 for a single adult, a £599 budget handset amounts to about 15 weeks of groceries, while a £1,336 premium model is close to 33 weeks.

A London buyer cited by Uswitch said she turned to a refurbished device after her previous phone failed. She bought a refurbished iPhone 15 for £389 instead of paying £799 for a new one, a saving of £410.

Demand for refurbished phones has been growing as shoppers try to limit spending without giving up access to newer models. The sector has also benefited from wider acceptance of devices that are inspected, repaired where needed and sold with warranties.

Uswitch used manufacturer launch prices for the UK market to compare handsets released between 2023 and 2026. For Google, it tracked the largest and most expensive Pixel model each year as the successor line changed.

Simrat Sharma, Mobiles Expert at Uswitch, said: "New phone prices can be quite shocking - and it's budget models, the ones most people actually buy, that have gone up fastest.

"Which is why we've launched a comparison service dedicated to refurbished phones.

"A professionally refurbished handset from a seller like Back Market or Reboxed can be hundreds of pounds cheaper than new, and it's one of the best ways to get the features you want for less.

"For anyone who doesn't need to have the very newest release, going refurbished can save hundreds of pounds. Before buying, it's worth checking the phone's condition grade, warranty, battery health and how long it will keep getting software updates, so you know you're getting the best value for your money."