In 2022, the worldwide smartphone market confronted macroeconomic difficulties that led to a 12% YoY decline in general gross sales. Nonetheless, there was a contrasting development within the world premium smartphone market, which noticed a 1% YoY improve in gross sales. This development has allowed the premium value phase to contribute to 55% of the whole world smartphone market income for the primary time ever. Moreover, the premium phase captured greater than one-fifth of whole world smartphone gross sales.
Apple iPhone captures 75% of the premium smartphone market in 2022
In accordance with CounterPoint Analysis, a number of components contributed to the expansion of the premium smartphone market in 2022. One of many principal components was the resilience of prosperous shoppers, who have been much less affected by macroeconomic difficulties in comparison with different clients. In consequence, gross sales within the premium market grew, whereas these within the entry and mid-tier segments declined. Moreover, as smartphones turn into extra central to folks’s lives, they’re prepared to spend extra on their units and retain them for an extended interval. That is evident in the truth that the $1,000 and above value phase was the quickest rising, with a 38% YoY improve in gross sales.
One other key issue for development was the “premiumization” development throughout areas. Demand within the premium phase was pushed by folks upgrading their final gadget. The upgrades have been evident not solely in mature markets like North America but additionally in rising economies the place shoppers on their third or fourth gadget began to interrupt into the premium market.
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Amongst OEMs, Apple noticed a 6% YoY improve in gross sales within the premium market, increasing its share to seize three-fourths of the whole gross sales within the phase. Nonetheless, Apple might have grown extra if not for the iPhone 14 Professional and Professional Max provide disruption in the course of the peak vacation season in 2022. Apple additionally gained from Huawei’s decline in China.
Samsung ranks second within the premium smartphone market
Samsung, alternatively, noticed a decline of 5% YoY in 2022. The corporate misplaced out on the China market alternative as a consequence of its weak presence within the area. Moreover, the launch of the Galaxy S22 collection in 2022 came about a lot later than that of the S21 in 2021. Nonetheless, the expansion of foldable smartphones has been a vibrant spot for Samsung.
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Honor gained from a low base because it expanded its market share in China pushed by the Magic collection. The model will make a worldwide push in 2023. Google was additionally featured among the many prime OEMs rising from a low base. Pushed by the Pixel 6 Professional and Pixel 7 Professional. Google has elevated its deal with the smartphone phase. Aside from these, most Chinese language OEMs declined in 2022 as a consequence of tough working circumstances within the home market, from the place they derive a good portion of their flagship gross sales.
For Apple, the expansion in mature markets got here from the upgrades in its put in base. The stickiness of the iOS ecosystem with a number of units and companies is excessive. If an iPhone consumer additionally owns an Apple Watch or Mac, the person’s subsequent smartphone improve will possible be one other iPhone. Moreover, due to Apple’s aspirational model worth and step-by-step growth, its gross sales have been rising in rising economies as properly. Android’s lack of share to iOS within the premium phase can be one of many causes for Google’s smartphone push.
Nonetheless, Android might see a brand new wave of development in 2023 as extra OEMs are anticipated to launch foldable units within the premium phase this yr. Current foldable choices in China are set to develop to markets exterior the nation. We may also see Honor pushing into the European market to achieve a share this yr.
In conclusion, the expansion of the premium smartphone market in 2022 was pushed by a number of components. Together with the resilience of prosperous shoppers, the premiumization development throughout areas, and the stickiness of the iOS ecosystem. Apple was the highest performer within the premium phase, adopted by Samsung, HONOR, and Google. In 2023, we count on to see extra OEMs launching foldable units within the premium phase. Which might result in a brand new wave of development for Android. Moreover, Honor’s growth into the European market might additional shake up the premium smartphone market.
