High-end smartphone manufacturers enjoyed an influx of increased sales in 2023, particularly Apple, as the latest data showed that, once again, the technology titan holds the biggest market share in the premium handset category. However, there were a few surprises last year, and rising challenges in 2024 will attempt to derail Apple’s progress.
Despite having an unrivaled hold in the premium smartphone market, Apple’s market share actually declined in 2023 due to various reasons
In 2022, Apple’s global market share for premium smartphones stood at 75 percent, maintaining an enormous gap with its closest rival, Samsung, at 16 percent. Last year, the Korean giant managed to bring that share up to 17 percent, whereas Apple lost some ground but still finished first at 71 percent. Counterpoint Research notes that despite maintaining a stronghold in this category, Huawei and its Mate 60 lineup this year challenged the Cupertino behemoth, bringing its market share to 5 percent.
TrendForce previously reported that Apple will face new challenges heading into 2024, with Huawei’s resurgence being highlighted as one of the primary threats. Overall, the data shows that devices with a wholesale price of $600 or more had a 24 percent market share in 2023, with this segment witnessing a 300 percent growth since 2016. Counterpoint Research’s Senior Analyst Varun Mishra believes that consumers are willing to fork over more money because they feel that they can use it for a longer period, while others upgrade because such handsets have become a status symbol for them.
“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.”
The ultra-premium smartphone market is also the reason behind this gradual growth, with models selling for $1,000 or more, capturing 33 percent of global sales. These statistics can be an eye-opener for various phone makers as they can begin to incorporate more features that help differentiate their offerings from the competition. For this year, Samsung is introducing titanium to the Galaxy S24 Ultra, while Apple is said to bring larger displays to the iPhone 16 Pro and iPhone 16 Pro Max. Overall, it should be an exciting year for this industry, and we will be watching it closely.
News Source: Counterpoint Research
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