Major companies like Apple and Blackberry are making smartphone sales go through the roof. However, as sales increase the average price of these advanced handsets are falling.

Prices were slashed in 3rd quarter of 2009. This could be attributed to BOGO deals and other promotional sales.

The average purchase price for a mobile phone in the US for the third quarter 2009 was $85, this is compared to $88 for the corresponding period in 2008.

The average smartphone price dropped nearly $3 during the same period in 2008. This may not seem like much but it’s still something.

This came at a bit of a surprise seeing how people are constantly trying to upgrade to the next big smartphone. It could be due to increased competition in the space or lower costs of manufacturing.

Smartphones have bred this culture of upgrading based on new innovation. If you don’t buy the newest, you won’t get the newest feature and that has proved difficult for consumers to pass up on.

Innovation continues to drive new competition. Just last year there was only 1 android smartphone and now there are 8.