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- The premium smartphone market captured 55% of the global smartphone market's revenue in 2022, according to a new report.
- Apple is leading the charge with 75% market share in the premium smartphone segment.
- For more stories, visit the Tech & Trends homepage.
The premium smartphone market is growing and, according to a report by Counterpoint, it captured 55% of the global smartphone market’s revenue for the first time ever and accounted for 21% of global smartphone sales in 2022.
While overall smartphone sales fell by 12%, global premium smartphone (those costing $600+) sales saw an increase of 1%. This trend suggests that some consumers are willing to pay a premium price for high-quality devices that offer advanced features and specifications.
The report also reveals that Apple is leading the charge with 75% market share in the premium smartphone segment, a 6% increase from 2021. Had the tech giant not faced supply issues for its iPhone 14 Pro and Pro Max in 2022, they might have had an even higher increase.
Samsung saw a 5% sales decline from the previous year, with the report saying that the company’s weak presence in China might have also played a role in the decline, together with the tough economic conditions experienced globally. However, the report describes the foldable phone market as a "bright spot" for Samsung, a market that Counterpoint previously said would grow by 52% in 2023.
"Despite the tough market conditions in 2022, affluent consumers were more immune to the macroeconomic difficulties than customers from the lower end," said Counterpoint analyst Varun Mishra in a statement.
"Consequently, sales in the premium market grew, while those in the entry and mid-tier segments declined. Also, as smartphones become more central to their lives, people are ready to spend more on their devices and retain them for a longer period. This is also one of the reasons the $1 000 and above price segment was the fastest growing (38% YoY) in 2022."
Other potential factors driving the growth of the premium smartphone market is the increasing adoption of smartphones in emerging markets and the acceleration towards remote work and virtual communication.
As more people in these regions gain access to affordable smartphones, they are more likely to upgrade to premium devices as their incomes grow. And as the gig economy continues to thrive, the demand for premium smartphones with better video and audio capabilities is likely to grow as well.
With all this said, the premium smartphone market is not without its challenges. The high price of premium smartphones can be a barrier to entry for many consumers, particularly in emerging markets where affordability is a key consideration. Additionally, the lack of significant competition in the premium smartphone market can lead to reduced innovation and higher prices.
As smartphone technology continues to develop and new features are introduced, it will be interesting to see how the premium smartphone market evolves and how companies respond to the changing demands of consumers.
