The global premium smartphone (with wholesale price ≥$600) market’s sales have been projected to grow by six percent in 2023 to hit a new record, according to Counterpoint Research’s Market Pulse Service.
The firm stated that this would contrast with the decline projected for the overall global smartphone market last year.
The premium segment was likely to capture close to one-fourth of the global smartphone market sales and 60 percent of the revenues in 2023, it highlighted.
It stated that the premium segment had emerged as a growth area in an 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.”
The firm noted that while Apple continued to be the premium market’s undisputed leader, its market share declined this year.
It explained that this was due to Huawei’s resurgence in China, with Samsung also gaining market share.
According to Counterpoint Research, Apple grabbed 43 percent of the market share of global smartphone revenues in the third quarter of 2023.
In terms of regions, much of the global premium market’s growth in 2023 was being driven by China, Western Europe, India and the Middle East and Africa regions, the firm highlighted,
It added, “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.”
Global smartphone shipment in 2023 is expected to decline by five percent year-on-year to reach 1.2 billion according to Counterpoint Research.
This will be the lowest level in almost a decade.
SOURCE: PUNCHNG
