The global market for premium smartphones, defined as those with a wholesale price of $600 or higher, is poised to experience a remarkable growth of 6 percent in 2023, establishing a new sales record.
This growth stands in stark contrast to the anticipated decline projected for the broader global smartphone market in 2023, according to the latest research report from Counterpoint Research’s Market Pulse Service
The report highlights that the premium smartphone segment is anticipated to claim nearly a quarter of the total global smartphone market sales, contributing 60 percent to overall revenues in 2023. Notably, in recent years, the premium smartphone sector has emerged as a beacon of growth within an otherwise sluggish market.
“There has been a noticeable change in consumer preferences, with individuals recognizing the significance of investing in a high-quality device that offers longevity. Possessing the latest flagship models has also evolved into a status symbol, particularly in emerging markets, where consumers are transitioning directly from mid-price range to the premium category,” Counterpoint Research’s Senior Analyst Varun Mishra said.
Apple maintains its dominant position in the premium smartphone market. Apple’s market share in the premium smartphone segment has seen a decline compared to the previous year, largely attributed to Huawei’s resurgence in China with the Mate 60 series.
Samsung has expanded its market share in the premium smartphone segment, driven by the success of its S23 and Foldable series, with foldable smartphones emerging as a distinctive feature in the premium segment.
The Counterpoint Research data, comparing 2022 and 2023, indicates this market shift among top smartphone OEMs in the premium segment. However, the preliminary Q4 2023 data warrants further analysis.
Geographically, the growth of the global premium smartphone market in 2023 is primarily propelled by regions such as China, Western Europe, India, the Middle East, and Africa. Notably, India stands out as the fastest-growing premium market globally, alongside China, MEA, and Latin America, all projected to achieve record-breaking premium market sales.
Within the premium smartphone market, it is the ultra-premium segment, encompassing devices priced at $1,000 and above, that is fueling the overall growth. This price category alone accounts for more than one-third of the total premium market sales in 2023.
The report concludes that the premium smartphone segment is expected to consistently outpace the broader global smartphone market. It emphasizes the significance for OEMs to differentiate their offerings and establish robust brand identities to capitalize on the ongoing growth in this segment, the report said.