Smartphone pricing is being disrupted at both the budget and premium ends as higher component costs make low-margin devices less viable and weaken manufacturers’ ability to defend flagship prices. Apple raised the price of its iPhone 17e, launched in March, by 16.1% on the 10th, from 990,000 won to 1.15 million won. Samsung Electronics also launched the Galaxy A37 in South Korea at 598,400 won in June this year, 19.8% above the Galaxy A36. IDC forecast that memory shortages would lift average smartphone selling prices 27.6% this year while shipments decline 16.7%, prompting Android vendors focused on low-end products to discontinue budget models and emphasize premium lines. Chinese manufacturers have felt the pressure, with Xiaomi shipments falling 26% year over year and Vivo shipments declining 21% in the second quarter. Foldable phones are one premium growth area, with IDC forecasting 12.6% annual expansion, but flagship pricing is also under strain. In mainland China, the 256GB iPhone 18 Pro listed at 9,999 yuan on Apple’s website was selling for about 9,099 yuan on JD.com and Pinduoduo less than 48 hours after pre-orders began. The discount contrasts with Apple’s post-2020 policy of enforcing official launch pricing through penalties for dealers. Apple’s China revenue growth is now close to flat after two consecutive quarters of pressure, and continued declines in transaction prices could affect hardware revenue, accessory sales, service subscriptions and App Store commissions. Consumers are increasingly extending device lifespans, repairing phones and buying used devices. TrendForce said used and repair demand was helping limit the decline in smartphone panel shipments to 2.5% this year despite an expected double-digit drop in handset shipments.