Apple remains number one in the premium phone market

It seems that the global sales of smartphones will decrease this year, while the sales of premium phones will continue to increase and reach new records. Apple still leads the premium phone market, but other manufacturers are also gaining.

According to Counterpoint Research's Market Pulse Service, sales in the global high-end smartphone market will increase by 6 % in 2023, reaching a new record. According to this classification, phones with a price higher than 600 US dollars, which is just under 550 euros, belong to the higher price class. This data is in contrast to the announced decline in sales that was expected in the smartphone market last year. The premium segment of devices is likely to account for almost ča quarter of all phone sales and 60 % of all revenues. In the last few years, the premium segment has emerged as an area of growth in an otherwise weak market.

Commenting on the growth of the premium phone market, senior analyst Varun Mishra says: “There has been a change in consumer purchasing patterns in the smartphone market. Given the importance of the smartphone, consumers are willing to spend more to get a high-quality device that they can use for longer hours. Owning the latest and greatest showpieces has also become a status symbol for many consumers, especially in developing markets where they go directly from mid-range to premium. In addition, these devices are increasingly available due to seasonal promotions and various financing options."

Apple is still number one in the premium device market. However, its share decreased compared to 2022. This is mainly due to Huawei's resurgence in China, fueled by the Mate 60 series. Samsung has also increased its share thanks to the S23 series and, perhaps somewhat surprisingly, foldable devices. It is precisely these that have emerged on the premium market as an element that makes a difference. 

Looking at different regions, in 2023 the growth of the global premium products market was largely driven by China, Western Europe, India, and the Middle East and Africa (MEA) regions. In fact, China, India, MEA and Latin America are most likely to achieve a new sales record in the premium market, while India will be the fastest growing market in the world.

If we look at the premium market in more detail, the driver of growth is the segment of ultra-premium devices. In 2023, devices costing more than 1,000 euros represented more as a third of the total sales in the premium market.