75% Of The Market For Premium Smartphones is Dominated By iPhone.

Global smartphone sales fell 12% year over year in 2022 as a result of macroeconomic challenges. The worldwide premium smartphone market, which showed a 1% YoY rise in sales, had a divergent growth. For the first time ever, thanks to this rise, the premium pricing segment now accounts for 55% of the revenue generated by the whole global smartphone market. Moreover, more than one fifth of all smartphone purchases worldwide were in the premium sector.

IN 2022, APPLE IPHONE CAPTURES 75% OF THE MARKET FOR PREMIUM SMARTPHONES.

Several reasons, according to CounterPoint Research, fueled the premium smartphone market’s expansion in 2022. The resilience of wealthy consumers, who were less impacted by macroeconomic problems than other customers, was one of the key contributing causes. Sales in the premium market increased as a consequence, but those in the entry-level and mid-tier categories decreased. Also, when cellphones take on a more significant role in people’s lives, they are ready to spend more money on them and keep them for longer. This is demonstrated by the fact that, with a 38% YoY rise in sales, the price sector of products costing $1,000 and more saw the greatest growth.

The widespread tendency of “premiumization” was another important driver of development. People updating their most recent gadget drove demand in the premium class. Upgrades were noticeable in emerging nations as well as mature markets like North America, where users of their third or fourth device were beginning to enter the premium market.

Apple increased their market share to account for three-fourths of all premium market sales among OEMs with a 6% YoY rise in sales. Yet, if not for the supply interruption of the iPhone 14 Pro and Pro Max during the busiest holiday shopping season in 2022, Apple may have expanded even further. Due to Huawei’s collapse in China, Apple also benefited.

IN THE MARKET FOR PREMIUM SMARTPHONES, SAMSUNG IS RANKED SECOND.

In contrast, Samsung had a 5% YoY drop in 2022. Due to a lack of a strong presence in the area, the firm missed out on the China market potential. Moreover, the Galaxy S22 series was introduced in 2022 significantly later than the S21 in 2021. Yet, Samsung has benefited from the rise of foldable devices.

Because to the Magic series, Honor increased its market share in China from a low starting point. In 2023, the company will launch a global campaign. Among the top Manufacturers rising from a low start was Google as well. under the control of the Pixel 6 Pro and Pixel 7 Pro. Google now places more emphasis on the smartphone market. Apart from this, the majority of Chinese OEMs had declines in 2022 as a result of challenging business environments in the home market, where they obtain a sizable chunk of their flagship sales.

Apple’s expansion in established areas resulted from enhancements to its installed base. With numerous devices and services, the iOS ecosystem has a high degree of stickiness. The next smartphone upgrade for an iPhone user who also owns an Apple Watch or a Mac will probably be another iPhone. Also, Apple’s sales have been increasing in emerging nations as a result of its aspirational brand value and gradual development. Google’s drive into smartphones is partly motivated by Android’s declining market share in comparison to iOS in the premium class.

But given that more OEMs are anticipated to introduce foldable devices in the premium market this year, Android may experience a fresh growth spurt in 2023. Chinese foldable products already on the market will soon reach foreign markets. Honor will also be attempting to acquire market share in Europe this year.

In conclusion, a number of reasons contributed to the premium smartphone market’s rise in 2022. among these are the tenacity of wealthy customers, the premiumization trend globally, and the tenacity of the iOS ecosystem. In the premium market, Apple outperformed competitors Samsung, HONOR, and Google. We anticipate that more OEMs will introduce foldable devices in the premium market in 2023. It can result in a fresh round of Android growth. Moreover, Honor’s entry into the European market may further roil the market for high-end smartphones.