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IBNS: The global premium smartphone (wholesale price ≥$600) market’s sales are likely to grow 6% YoY in 2023 to hit a new record, according to Counterpoint Research’s Market Pulse Service.
This contrasts with the decline projected for the overall global smartphone market this year.
The premium segment is likely to capture close to one-fourth of the global smartphone market sales and 60% of the revenues in 2023.
Over the past few years, the premium segment has emerged as a growth area in the otherwise weak market.
Commenting on the premium market’s growth, Senior Analyst Varun Mishra said, “There has been a shift in consumer buying patterns in the smartphone market. Considering the importance a smartphone holds, consumers are willing to spend more to get a high-quality device that they can use for a longer period. Owning the latest and greatest flagships has also become a status symbol for many consumers, especially in emerging markets where they are jumping directly from the mid-price band to the premium band. Further, these devices are increasingly becoming more affordable due to promotion seasons and financing options.”
Apple continues to be the premium market’s undisputed leader.
However, compared to 2022, its share has declined this year.
This is mainly due to Huawei’s resurrection in China driven by the Mate 60 series.
Samsung has also gained share driven by its S23 and Foldable series. Foldables have also emerged as a differentiator in the premium market.
In terms of regions, much of the global premium market’s growth in 2023 is being driven by China, Western Europe, India and the Middle East and Africa (MEA) regions.
In fact, China, India, MEA and Latin America are likely to see a new record for premium market sales, with India being the fastest-growing premium market globally.
Within the premium market, it is the ultra-premium segment that is driving the growth. The $1,000 and above price segment has captured over one-third of the total premium market sales in 2023.
Overall, the premium segment is likely to continue to outgrow the global smartphone market. OEMs that can differentiate themselves and, more importantly, build a strong brand will benefit from this segment’s growth.
