The year 2023 proved to be another triumph for Apple in the global premium smartphone market, a recent report by Counterpoint claimed. The tech giant maintained its stronghold, claiming a staggering 60% of the industry’s profits.
This significant share underscores Apple’s unwavering dominance in a market that has become a focal point for growth amid an otherwise challenging landscape.
Global Premium Smartphone Market in 2023
While the global smartphone industry was expected to drop overall, the premium segment saw a spectacular 6% year-over-year rise that set a new sales record. This resilient performance positions the premium market to capture nearly one-fourth of global smartphone sales, contributing a substantial 60% to the industry’s revenues in 2023.
Senior Counterpoint Analyst Varun Mishra highlighted a discernible shift in consumer behavior within the smartphone market. According to him, consumers are increasingly willing to invest in high-quality devices that offer longevity, recognizing the smartphone’s integral role in their lives.
“There has been a shift in consumer buying patterns in the smartphone market. 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. Owning the latest and greatest flagships has also become a status symbol for many consumers, especially in emerging markets where they are jumping directly from the mid-price band to the premium band. Further, these devices are increasingly becoming more affordable due to promotion seasons and financing options.”
Apple’s Continued Dominance Amidst Challenges
While Apple remains the undisputed leader in the premium market, 2023 saw a marginal decline in its market share compared to the previous year. This shift can be attributed to Huawei’s resurgence in China, fueled by the Mate 60 series, and Samsung’s gains driven by the S23 and Foldable series. Notably, foldable smartphones emerged as a key differentiator in the premium market, adding a new dimension to consumer choices.
The Counterpoint report highlights regional drivers behind the global premium market’s growth in 2023, with significant contributions from China, Western Europe, India, and the Middle East and Africa (MEA). India, in particular, stands out as the fastest-growing premium market globally. These regions are set to witness record-breaking premium market sales, reaffirming the escalating global demand for premium smartphones.
In the premium market, the ultra-premium segment – which includes devices that cost $1,000 and up – comes to dominate growth. In 2023, this market category will account for more than one-third of all sales in the premium market, indicating that consumers’ desire for high-end, expensive smartphones is expanding.
