The ultra-premium segment, particularly phones priced at $1,000 and above, is driving much of the growth, with India being the fastest-growing premium market globally.
The global premium smartphone market, devices with a wholesale price of $600 or more, is forecasted to grow by 6% year-over-year (YoY) in 2023, reaching a new record high. This growth is notable, particularly in contrast to the projected decline in the overall global smartphone market for the same period.
The premium segment is expected to account for nearly one-fourth of global smartphone market sales and 60% of the revenues in 2023, according to Counterpoint research. This segment has been a key growth area in an otherwise stagnant market in recent years.
Shift in the customer behaviour is a primary factor. Consumers are increasingly willing to invest more in high-quality smartphones that offer longevity. Owning flagship devices is also becoming a status symbol, particularly in emerging markets where consumers are leapfrogging from mid-priced to premium smartphones. The availability of promotional deals and financing options is also making these devices more accessible.
Apple remains the dominant player in the premium market, despite a slight decline in its market share in 2023, attributed mainly to Huawei’s resurgence in China with its Mate 60 series. Samsung has gained share, driven by its S23 and Foldable series, with foldable phones emerging as a significant differentiator in the premium segment.
Geographically, the growth of the premium market in 2023 is primarily fueled by China, Western Europe, India, and the Middle East and Africa (MEA) regions. Notably, China, India, MEA, and Latin America are expected to set new records for premium market sales, with India being the fastest-growing premium market globally.
The ultra-premium segment, particularly phones priced at $1,000 and above, is driving much of this growth. This segment has captured over one-third of the total premium market sales in 2023.
The outlook for the premium segment remains positive, with expectations that it will continue to outperform the broader global smartphone market. Success in this segment hinges on original equipment manufacturer’s ability to differentiate their products and build strong brand equity.
