Israelis are replacing their smartphones less frequently—but when they do, they are willing to pay more. Updated data from 2025 indicate a clear increase in average smartphone spending, alongside a significant strengthening of the premium category and a preference for more advanced devices.
According to data collected from 95 branches and sales websites of Mahsanei Hashmal, Shekem Electric, Shekem Duty Free, and the Payngo website—which together account for about 20% of Israel’s mobile sales—the average transaction price for purchasing a smartphone this year stood at NIS 2,434. This represents an increase of approximately 7% compared to 2024, when the average price was NIS 2,303.
Prices Rise—but Devices Cost Less
Surprisingly, the rise in the average transaction price does not stem from a general increase in the devices’ prices. On the contrary: Most leading brands actually saw price reductions. The average price of an iPhone in 2025 was NIS 4,358—a decrease of about 4% compared to last year. Samsung devices dropped about 8% to an average price of NIS 2,185, and Xiaomi also recorded a similar decline, averaging NIS 957.
The gap between falling device prices and rising overall spending is explained, in part, by changes in the purchase mix.
According to Liron Katz, VP of Business Development and Director of Digital Operations at Mahsanei Hashmal, consumers now tend to choose premium devices and more advanced mid-range models. “The smartphone has become a real work tool, similar to a personal computer,” he says, adding that the mid-range category still dominates the market, but the gap between it and the premium category has narrowed significantly.
Premium on the Rise
The premium category—devices priced above NIS 4,000, such as the Samsung S25 Ultra and iPhone Pro Max models—saw a sharp jump, reaching 36% of the market share, compared to just 28% last year.
The mid-range category, priced between NIS 1,000–4,000, remained the largest, but declined to 43% of the market—a drop of about 5%. Devices priced NIS 500–1,000 fell to 13%, while the cheapest devices, up to NIS 500, maintained a stable share of 8%.
Apple Strengthens, Samsung Weakens, and Nothing Surprises
Looking at brands, Apple recorded an 11% increase in iPhone sales compared to the previous year. Conversely, Samsung saw a decline of 8%, and Xiaomi a decrease of 4%.
The biggest surprise came from relatively young brands: Nothing surged 140% in sales, OPPO rose 50%, and Google Pixel recorded a 34% increase.
The best-selling device in Israel in 2025 was the base version of the iPhone 16—for the second consecutive year. In second place was the Samsung S25 Ultra, followed by Xiaomi’s Redmi Note 14 in third.
5G is No Longer a Luxury
One of the main factors driving the growth of advanced devices is the transition to 5G. This year, electricity retailers reported a 30% increase in sales of 5G communication packages—a figure that also reflects the demands of a younger audience for powerful devices that enable smooth running of games, apps, and video content, alongside significant improvements in camera quality.
Tel Aviv Loves iPhone, Beersheba Loves Samsung
Geographical preferences also remain. For the fourth consecutive year, Eilat leads in smartphone sales as a percentage of total sales, followed by Beersheba, Tel Aviv, the Krayot, and Petah Tikva.
Excluding Eilat from the calculation, Tel Aviv stands out as a city where iPhones and Xiaomi devices are mainly sold, whereas Beersheba shows a clear preference for Samsung devices.
More Trade-ins, Less Waste
The trade-in sector continues to grow: In 2025, the volume of transactions increased by 35%. One in four customers interested in purchasing a new smartphone considers a trade-in, and 15% of transactions are actually completed this way.
The manufacturers themselves also contributed to the trend: Apple and Samsung offered a $100 incentive this year to customers who traded in devices when upgrading to iPhone 17 or Galaxy S25 models—a move that strengthens the shift to more expensive devices, while also extending the life cycle of older devices.