Billions remain offline as smartphone prices rise, GSMA report finds

A GSMA report released this week reveals that 3.4 billion people worldwide remain offline even though they live in areas with mobile broadband coverage. The study attributes the persistent digital divide to the escalating cost of smartphone components, which has made devices increasingly unaffordable for low‑income households in developing regions. While network operators have expanded coverage to reach 92 percent of the global population, the price gap between entry‑level smartphones and the purchasing power of the poorest segments has widened, leaving a substantial portion of the world without practical access to the internet.

The report highlights that component price inflation, driven by supply‑chain disruptions and higher demand for advanced chips, has pushed the average cost of a basic smartphone above $100 in many markets. For families living on less than $2 a day, this price represents a significant barrier, limiting opportunities for education, health services, and economic participation. Policymakers and industry stakeholders are urged to explore cost‑reduction strategies, such as subsidized devices, local manufacturing, and shared‑ownership models, to bridge the gap between coverage and actual connectivity.