Preliminary figures show a major shift in smart phone sales in 2023 towards premium brands and away from cheaper models.
Research released by Counterpoint shows a marked increase in the sales of phones whose wholesale price exceeds US$600 (A$894). Counterpoint expects final figures to show a growth of 6 per cent year-on-year in 2023 of these handsets.
According to Counterpoint, Apple continues to be the premium market’s undisputed leader, however its market share has slipped slightly from 75 percent to 71 percent. Samsung’s share increased marginally from 16 to 17 percent, due to Galaxy S23 and foldable phone sales. Counterpoint says foldables have emerged as a differentiator in the premium market – news that Samsung will relish given its investment in them.
Huawei also increased market share.
Top smartphone OEM’s share in premium market, 2022 v 2023. Source: Counterpoint
This trend in premium nations goes beyond cashed-up western nations. Counterpoint says China, India, the Middle East and Latin America are likely to set a new record for premium market sales in 2023, with India being the fastest-growing premium market globally.
When you factor in the declining sales of cheaper handsets, overall smartphone sales numbers declined.
Counterpoint says the premium segment is likely to capture close to a quarter of the global smartphone market sales and 60 percent of the revenues in 2023. Over the past few years, the premium segment has emerged as a growth area in the otherwise weak market.
Global smartphone premium segment share. Source: Counterpoint
“There has been a shift in consumer buying patterns in the smartphone market,” says 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.”
Counterpoint says the more expensive premium handsets are driving growth. “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.”
