Smartphones are getting more expensive around the world

Globally, the average price of a smartphone is expected to rise 6 percent to $324 this year, according to new data from GfK, a market research firm that collects customer checkout data. The hike is surprising as the price of smartphones — and electronics in general — tends to decrease over time as components are produced in larger quantities, bringing costs down.

Ever since Apple released the first iPhone, competition has been lowering prices as more players entered the market with cheaper and cheaper options. Additionally, smartphone demand in markets like India and China brought about local competitors whose lower prices appealed to customers in those areas, driving down the average price of phones globally. Now, however, as the majority of people in the world become smartphone owners, smartphone makers are adding in all sorts of new features to encourage consumers to upgrade their phones. These upgrades engender bigger price tags.