Sales of premium smartphones (with a wholesale price of at least $600) are expected to reach a record high of 6% in 2023, according to Counterpoint Research’s Market Pulse Service.
According to The PUNCH, the company, this would be in contrast to the fall predicted for the global smartphone industry last year.
The report stated that the premium sector was expected to account for about one-fourth of global smartphone market sales and 60% of revenue in 2023.
The premium segment, it added, had emerged as a growth area in an otherwise sluggish market.
Senior Analyst Varun Mishra commented on the premium market’s expansion, saying, “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, particularly in emerging markets where consumers are moving directly from the mid-price band to the premium band. Furthermore, because of promotional seasons and financing possibilities, these devices are becoming more affordable.”
While Apple remained the unchallenged leader in the premium market, its market share fell this year, according to the firm.
This was attributed to Huawei’s resurgence in China, with Samsung also increasing market share.
According to Counterpoint Research, Apple had 43 per cent of worldwide smartphone revenue in the third quarter of 2023.
According to the organization, majority of the worldwide premium market’s growth in 2023 would be led by China, Western Europe, India, and the Middle East and Africa regions.
It went on to say, “Within the premium market, the ultra-premium segment is driving growth. In 2023, the $1,000 and above price segment will account for more than one-third of overall premium market sales.
“Overall, the premium segment is expected to outgrow the global smartphone market. OEMs that can distinguish themselves and, more importantly, develop a strong brand will benefit from the rise of this category.”
According to Counterpoint Research, global smartphone shipment in 2023 is predicted to fall by 5% year on year to 1.2 billion. This will be the lowest level in almost ten years.
