Overview: The overall smartphone ASP is projected to rise by 2.3% YoY to $366 in 2025, a lower forecast than our February prediction of a 3.9% increase. Despite tariff induced pricing pressures, particularly in North America, Q1's substantially weak ASP numbers (-5.6% YoY) and downward pressure in emerging markets more than offset ASP growth expected in H2 globally. Nevertheless, the up-trend in ASP is expected to continue throughout the forecast period. This growth will be driven by a shift toward higher-end smartphones and ongoing 5G migration, which is expected to accelerate as a result of cost pressures that will further squeeze the entry and 4G segment. While the cost of 5G components and smartphones is expected to decline in the long-term as the technology matures and benefits from economies of scale, rising BoM and operational costs - exacerbated by the tariff war - will pressure OEMs to maintain profitability. Leading OEMs like Apple and Samsung are increasingly targeting mature users who exhibit longer replacement cycles but prefer higher-value devices or innovative form factors. The recent move by Apple to retire the iPhone SE line and instead extend the number series with the 16e, reflects this trend, as top OEMs integrate GenAI features into smartphones, significantly increasing BoM costs, particularly in memory. While the full value of GenAI will likely only become clearer with future advancements, early signs suggest that consumers are interested in adopting the first generation of these Gen AI-enhanced devices.