In 2022, the worldwide smartphone market confronted macroeconomic difficulties that led to a 12% YoY decline in general gross sales. Nevertheless, there was a contrasting development within the world premium smartphone market, which noticed a 1% YoY enhance in gross sales. This development has allowed the premium worth section to contribute to 55% of the entire world smartphone market income for the primary time ever. Moreover, the premium section captured greater than one-fifth of whole world smartphone sales.
Apple iPhone captures 75% of the premium smartphone market in 2022
Based on CounterPoint Research, a number of elements contributed to the expansion of the premium smartphone market in 2022. One of many fundamental elements was the resilience of prosperous shoppers, who had been much less affected by macroeconomic difficulties in comparison with different clients. Because of this, gross sales within the premium market grew, whereas these within the entry and mid-tier segments declined. Moreover, as smartphones grow to be 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 worth section was the quickest rising, with a 38% YoY enhance in sales.
One other key issue for development was the “premiumization” pattern throughout areas. Demand within the premium section was pushed by folks upgrading their final system. The upgrades had been evident not solely in mature markets like North America but in addition in rising economies the place shoppers on their third or fourth system began to interrupt into the premium market.
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Amongst OEMs, Apple noticed a 6% YoY enhance in gross sales within the premium market, increasing its share to seize three-fourths of the entire gross sales within the section. Nevertheless, Apple may have grown extra if not for the iPhone 14 Professional and Professional Max provide disruption through the peak vacation season in 2022. Apple additionally gained from Huawei’s decline in China.
Samsung ranks second within the premium smartphone market
Samsung, then again, noticed a decline of 5% YoY in 2022. The corporate misplaced out on the China market alternative because of its weak presence within the area. Moreover, the launch of the Galaxy S22 sequence in 2022 occurred a lot later than that of the S21 in 2021. Nevertheless, the expansion of foldable smartphones has been a vibrant spot for Samsung.
Honor gained from a low base because it expanded its market share in China pushed by the Magic sequence. The model will make a worldwide push in 2023. Google was additionally featured among the many high OEMs rising from a low base. Pushed by the Pixel 6 Professional and Pixel 7 Professional. Google has elevated its deal with the smartphone section. Aside from these, most Chinese language OEMs declined in 2022 because of troublesome 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 effectively. Android’s lack of share to iOS within the premium section can be one of many causes for Google’s smartphone push.
Nevertheless, Android may see a brand new wave of development in 2023 as extra OEMs are anticipated to launch foldable units within the premium section this yr. Current foldable choices in China are set to increase to markets exterior the nation. We will even 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 elements. Together with the resilience of prosperous shoppers, the premiumization pattern throughout areas, and the stickiness of the iOS ecosystem. Apple was the highest performer within the premium section, adopted by Samsung, HONOR, and Google. In 2023, we count on to see extra OEMs launching foldable units within the premium section. Which may result in a brand new wave of development for Android. Moreover, Honor’s growth into the European market may additional shake up the premium smartphone market.