Apple Leads Premium Smartphone Market Despite Share Decline

Despite a projected decline in the overall global smartphone market, the premium segment (wholesale prices of $600 US or more) is set to grow by 6% year-over-year in 2023, according to Counterpoint Research’s Market Pulse Service.

This growth indicates a new record for the premium market, which is expected to constitute nearly a quarter of global smartphone market sales and 60% of the revenues this year.

Apple remains the dominant force in the premium market, although its share has seen a slight decline compared to 2022, down to 71% from 75%. This shift is due to Huawei’s resurgence in China with its Mate 60 series and Samsung’s gains from its S23 and Foldable series. Notably, foldable phones have become a significant differentiator in the premium market, says Counterpoint Research.

“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.” said Senior Analyst Varun Mishra from Counterpoint Research.

The global premium market’s growth in 2023 is primarily driven by China, Western Europe, India, and the Middle East and Africa (MEA) regions. Remarkably, China, India, MEA, and Latin America are expected to set new records for premium market sales, with India emerging as the fastest-growing premium market globally.

The ultra-premium segment, particularly the $1,000 and above price range, is driving much of this growth, capturing over one-third of the total premium market sales in 2023. Apple’s iPhone prices went up in Canada slightly this year and it seems there’s no sign of slowing down, given inflation across all industries still.