Apple is still the heavyweight No.1 but sold fewer premium phones in 2023 than previously،
There's a race to sell the most high-end phones in a year, and so far Apple has been the champion.
In 2023, the Cupertino heavyweight is still king, but the crown is getting heavier and indeed, Apple sold fewer premium iPhones last year than in 2022 (via 9to5Mac).
There's a new Counterpoint Research Report This shows that the growing competition from Samsung and the resurrected threat from Huawei are real and affecting Apple's sales.
What is a premium phone?
According to the Counterpoint Research report, there is an easy way to classify phones into premium and non-premium. Instead of benchmark tests, comparing chips and wireless charging speeds, they consider a phone premium if its wholesale value is over $600 (which usually equates to a retail price over $800) . Of all the phones sold in 2023, almost a quarter (24% to be exact) are premium and that's an all-time record. Their share is increasing rapidly.
Sales in the global premium smartphone market (again, phones that cost more than $800 in stores) are expected to grow 6% year-over-year in 2023 to reach a new record. In 2016, the market share of premium phones was only 6%, in 2017 it was 8%, and in 2018 it was 13%.
Although they only represent 24% of total sales, premium phones are expected to account for 60% of 2023 revenues.
There has been a change
“There has been a change in consumer purchasing habits in the smartphone market. Given the importance of a smartphone, consumers are willing to spend more to get a high-quality device that they can use for longer. Owning the latest and greatest flagship products has also become a status symbol for many consumers, especially in emerging markets where they are moving straight from the mid- to high-end price bracket. Additionally, these devices are becoming more and more affordable due to promotional seasons and financing options,” the report reads.
Apple continues to be the undisputed leader in the premium market. However, compared to 2022, Apple's global market share in the premium smartphone market declined last year, from 75% to 71%, with corresponding gains for Samsung and Huawei. Samsung's gains have been attributed to the growing appeal of foldable phones – a market that Apple has yet to invade and take on the foldable pioneers.
