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A report by Counterpoint claims the global premium smartphone market is on the rise, despite a projected decline in broader smartphone sales.
Apple continues to have the lion’s share in the global premium smartphone market, but this dominance dropped slightly last year.
That’s according to a new report from Counterpoint, which looked at the global sales of premium smartphones – those with a wholesale price of more than $600. This market continues to grow, despite an expected decline in the overall smartphone market.
Counterpoint’s latest survey suggests global premium smartphone sales grew by 6pc in 2023, which marks a new record for this market. This preliminary data also suggests the premium smartphone market represents roughly 25pc of global smartphone market sales and 60pc of revenue last year.
“There has been a shift in consumer buying patterns in the smartphone market,” said Counterpoint senior analyst Varun Mishra. “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 6pc growth in this market is a significant increase compared to 2022, where the global sales of premium smartphone grew by only 1pc compared to 2021 – according to previous Counterpoint research.
Apple’s dominance wanes
Apple remains the undisputed leader of the premium smartphone market, with a preliminary market share of 71pc in 2023. Its biggest competitor – Samsung – has a 17pc share, followed by Huawei with 5pc.
But this result is a drop for Apple compared to its dominance in 2022, where it took 75pc of the premium smartphone market. Samsung and Huawei both saw modest increases in their share of this market last year.
Counterpoint attributed some of the changes to Huawei’s “resurrection in China” driven by its Mate 60 series and Samsung gaining some market share with its Galaxy S23 and its focus on foldable smartphones.
Despite Apple’s dominance, projections of a decline in the sale of iPhones appears to have rattled investors. A report by Fortune claims Apple’s stock dropped by more than 3pc earlier this week and took more than $100bn from its market cap.
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