The landscape of the global smartphone market in 2023 presented a stark contrast. Overall, the industry has witnessed a decline in sales. However, the premium smartphone segment, epitomized by models such as the iPhone 15 Pro, has defied this trend, registering a remarkable estimated 6% year-over-year growth. This growth is forecasted to establish a new high in the market, as noted by Counterpoint Research, incorporating its projections for the fourth quarter of 2023.
Counterpoint Research’s analysis highlights a significant upturn in the premium sector (wholesale price $600 and above). This segment is anticipated to constitute nearly a quarter of global smartphone market sales and 60% of the revenues in 2023. This growth is not uniform across all regions. The surge in premium smartphone sales is particularly notable in specific markets, including China, India, Latin America, and the Middle East and Africa, with India emerging as the world’s fastest-growing premium smartphone market.
Despite its dominant position in the premium market, Apple has experienced a slight decrease in market share over the past year. Competitors such as Samsung, with its S23 and foldable phone models, and Huawei, experiencing a resurgence in China, have made notable gains.
Varun Mishra, a senior analyst at Counterpoint, has observed a shift in consumer purchasing behaviors. He noted: “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.” This shift is particularly evident in emerging markets, where owning high-end smartphones is increasingly seen as a status symbol. The growing accessibility of these devices, thanks to promotional periods and financing options, is also contributing to this trend.
The ultra-premium segment, including smartphones costing over $1,000, has been a significant growth driver.
The $1,000 and above price segment captured over one third of the total premium market sales in 2023. Meanwhile, the 6% year-over-year increase in premium smartphone sales stands in contrast to the previous year, 2022, when a mere 1% growth was seen.