The average selling price jumped 15 per cent year-over-year, and 6 per cent from the previous quarter, to a record $226, IDC said.

"The average selling price has grown consistently for the past eight quarters in a row due to increasing costs and growing 5G shipments at mid-premium price points," said Upasana Joshi, research manager, client devices, IDC.

Moreover, the inventory pile-up and post-festive tapering in demand will lead to a muted fourth quarter, said Navkendar Singh, associate vice president, devices research, IDC.

IDC expects 2022 shipments of around 150 million units, a decline of 8-9 per cent over the previous year, and Singh does not expect 2023 to be any better.

"The major challenges going into 2023 are the impact of inflation on consumer demand, increasing device costs, and slow feature phone-to-smartphone migration."