Though total gross sales of smartphones are on the decline across the globe, premium smartphone fashions, just like the iPhone 15 Professional and iPhone 15 Professional Max have hit a brand new year-over-year progress document of 6% — and the iPhone 15 Professional lineup accounts for the lion’s share of those premium smartphone shipments, handily beating out rivals like Samsung.
Over the previous few years, we’ve seen international gross sales of smartphones typically proceed to fall. Nevertheless, gross sales of the iPhone 15 have bucked the development, with Apple’s market share persevering with to broaden. Nevertheless, that’s a special story for the premium smartphone market, as Counterpoint Analysis’s figures present.
The analysis agency’s 2023 figures, together with its preliminary estimates for the fourth quarter, comprise encouraging information for sellers of premium handsets.
“The worldwide premium smartphone (wholesale worth $600) market’s gross sales are prone to develop 6% YoY in 2023 to hit a brand new document,” Counterpoint Analysis stated in an announcement. “The premium phase is prone to seize near one-fourth of the worldwide smartphone market gross sales and 60% of the revenues in 2023.”
Whereas the agency stories international progress, the brand new document is because of gross sales in China, India, Latin America, and the Center East and Africa. Of those international locations, India is reported to be the fastest-growing premium market on the earth.
Whereas Apple held a 71% share of the 2023 premium smartphone market, that’s really down from 2022’s 75% share of the pie. Counterpoint says Samsung has gained with its Galaxy S23 sequence and its foldable Galaxy Z Collection telephones (up 1% from the 2022 determine), whereas Huawei has “seen a resurrection in China,” pushed by the corporate’s Mate 60 sequence.
The analysis agency additionally says foldable smartphones have emerged as a differentiator within the premium market. The worldwide foldable smartphone market expanded 10% year-over-year within the second quarter of 2023, reaching 2.1 million models.
Through the second quarter of 2023, shipments within the total Chinese language smartphone market have been damage by the present financial challenges going through the nation and a discount in spending by shoppers, slipping 4% year-over-year to 61.9 million models. Nevertheless, the foldable smartphone market in China surged 64% year-over-year to achieve 1.2 million models. China now holds the most important share of the worldwide foldable smartphone market, with a 58.6% share.
“There was a shift in shopper shopping for patterns within the smartphone market,” famous Counterpoint senior analyst Varun Mishra. “Contemplating the significance a smartphone holds, shoppers are keen to spend extra to get a high-quality gadget that they will use for an extended interval.”
“Proudly owning the newest and biggest flagships has additionally turn into a standing image for a lot of shoppers, particularly in rising markets the place they’re leaping instantly from the mid-price band to the premium band,” continues Mishra. “Additional, these gadgets are more and more changing into extra reasonably priced attributable to promotion seasons and financing choices.”
Counterpoint says that “it’s the ultra-premium phase” that’s driving premium smartphone gross sales progress, with smartphones costing $1,000 or extra capturing greater than one-third of the full premium market gross sales throughout 2023.
The 6% premium smartphone market’s progress throughout 2023 contrasts with the mere 1% improve within the earlier yr, 2022.