Apple reportedly continues to lead the premium smartphone market globally. The global premium smartphone comprises devices with wholesale price of $600 or more (Rs 50000 or higher). According to CounterPoint Research, “Apple continues to be the premium market’s undisputed leader. ” The company continues to hold 71% share in the market. The second company in the list is Samsung with 17% market share.
However, compared to the year 2022, Apple’s share has declined this year. There are said to be two key factors behind this fall in market share: One, due to Huawei’s resurrection in China driven by the Mate 60 series. Two, Samsung has also gained share driven by its S23 and Foldable series.
What may hurt Apple in 2024
China continues to be a bit challenging for Apple with tensions between China and the US. Several Chinese State governments have banned their officials from using iPhones as official phones. Two, foldables are said to have emerged as a differentiator in the premium market. Here again, why there is no sign of Apple launching foldables in 2024 as well, all other rivals including Oppo and OnePlus have joined the foldables race.
Changing trends in smartphone market
Commenting on the premium market’s growth, Senior Analyst Varun Mishra said, “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.”
Within the premium market, it is the ultra-premium segment that is driving the growth. The $1,000 and above price segment has captured over one-third of the total premium market sales in 2023. Overall, the premium segment is likely to continue to outgrow the global smartphone market. OEMs that can differentiate themselves and, more importantly, build a strong brand will benefit from this segment’s growth.
However, compared to the year 2022, Apple’s share has declined this year. There are said to be two key factors behind this fall in market share: One, due to Huawei’s resurrection in China driven by the Mate 60 series. Two, Samsung has also gained share driven by its S23 and Foldable series.
What may hurt Apple in 2024
China continues to be a bit challenging for Apple with tensions between China and the US. Several Chinese State governments have banned their officials from using iPhones as official phones. Two, foldables are said to have emerged as a differentiator in the premium market. Here again, why there is no sign of Apple launching foldables in 2024 as well, all other rivals including Oppo and OnePlus have joined the foldables race.
Changing trends in smartphone market
Commenting on the premium market’s growth, Senior Analyst Varun Mishra said, “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.”
Within the premium market, it is the ultra-premium segment that is driving the growth. The $1,000 and above price segment has captured over one-third of the total premium market sales in 2023. Overall, the premium segment is likely to continue to outgrow the global smartphone market. OEMs that can differentiate themselves and, more importantly, build a strong brand will benefit from this segment’s growth.
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