Contrary to the anticipated slump in the global smartphone industry, the premium smartphone market has achieved a 6% year-on-year sales surge in 2023, setting a new record.
What Happened: Apple Inc. AAPL remained the "undisputed" leader in the premium smartphone segment, with a 71% share in 2023. However, its share saw a decline, with Huawei making a comeback in China with the Mate 60 series.
As per Counterpoint Research, the segment of premium smartphones, defined by a wholesale rate exceeding $600, is predicted to constitute almost one-fourth of global smartphone sales and 60% of the overall revenue in 2023. This segment has been the saving grace in a generally sluggish market.
"There has been a shift in consumer buying patterns in the smartphone market," noted Varun Mishra, Senior Analyst at Counterpoint Research.
He added that there is an increasing preference for high-quality devices for two reasons: longevity and status symbol.
Despite a minor drop in its share, Apple Inc. AAPL still holds the lead in the premium market – it holds a 71% market share in 2023, slightly down from 75% in 2022.
The emergence of Huawei in China, led by its Mate 60 series and Samsung Electronics Co Ltd. SSNLF with its Galaxy S23 series and foldable phones, is a noteworthy contributor to the changing market shares.
The growth in premium market sales is driven by regions such as China, Western Europe, India, and the Middle East and Africa, with India demonstrating the fastest growth in the premium market globally.
The ultra-premium segment, with a price point above $1,000, is the primary factor driving growth in the premium market, accounting for over a third of the total premium market sales in 2023.
Why It Matters: This marked growth in the premium smartphone market comes amidst a general slowdown in smartphone sales.
As per a November 2023 report, consumers have been increasingly delaying their smartphone purchases due to weak economic conditions.
Major smartphone makers, including Apple, Samsung, and Google, have felt the impact, with double-digit declines in sales.
However, the premium smartphone segment has not only resisted this trend but achieved record sales, signifying a change in consumer behavior towards investing in higher quality, longer-lasting devices.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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