The global premium smartphone market is poised to achieve remarkable growth in 2023, defying the overall decline in smartphone sales. Apple, the undisputed leader in the premium segment, continues to dominate the market, although its market share has slightly declined. Counterpoint Research predicts that the global premium smartphone market will experience a 6% year-over-year growth in 2023, reaching a new record. This growth is significant, considering the overall decline in smartphone sales worldwide.
The premium segment is expected to capture approximately one-fourth of the global smartphone market sales and 60% of the revenues in 2023. The surge in demand for premium smartphones can be attributed to consumers’ willingness to invest in high-quality devices that offer longevity and enhanced features. Owning the latest flagship smartphones has become a status symbol, particularly in emerging markets where consumers are jumping directly from the mid-price band to the premium band. Additionally, promotional seasons and financing options have made premium smartphones more affordable for consumers.
Apple continues to lead the global premium smartphone market, although its market share has slightly decreased from 75% in 2022 to 71% in 2023. The decline in Apple’s market share can be attributed to the resurgence of Huawei in the Chinese market with its latest Mate 60 series. Despite this decline, Apple remains the dominant player in the premium segment, with its iPhone models being highly sought after by consumers worldwide.
Samsung has emerged as a strong competitor in the premium smartphone market, gaining market share driven by its S23 series and foldable devices, including the Galaxy Z Fold5 and the Galaxy Z Flip5. Samsung currently holds a 17% market share in the premium segment, with a 1% annual increase. Other players, such as Huawei, have also witnessed a revival in the premium segment, particularly in the Chinese market.
The growth of the global premium smartphone market in 2023 is primarily driven by China, Western Europe, India, and the Middle East and Africa (MEA) regions. India, in particular, is the fastest-growing premium market globally, experiencing a surge in demand for premium smartphones. China, India, MEA, and Latin America are expected to witness record-breaking sales in the premium segment.
RTM Watch’s Take
The global premium smartphone market’s growth in 2023, despite the overall decline in smartphone sales, highlights the increasing demand for high-quality devices with advanced features. Apple’s market leadership, although slightly diminished, showcases the brand’s enduring appeal among consumers. Competitors like Samsung and Huawei have also made significant strides in the premium segment, offering innovative devices to attract consumers. As consumer preferences and buying patterns continue to evolve, it is crucial for smartphone manufacturers to adapt and provide compelling offerings to maintain their market share in the premium segment.
