Amid the declining smartphone market, premium gadgets are having their second. These pricy gadgets made up greater than half of the worldwide smartphone market’s income, in keeping with a report from Counterpoint.
The analytics firm’s report says that premium gadgets (with a wholesale worth of $600 or extra) grew by 1% year-on-year when it comes to cargo and captured 55% when it comes to income. That is vital given the smartphone market confirmed a dip of 11% year-on-year for 2022 because of powerful financial circumstances.
There is no such thing as a prize for guessing absolutely the winner of this market: Apple. The corporate had a mammoth 75% market share within the premium phase — gross sales grew by 6% yr over yr. Counterpoint talked about that this progress would have been greater if Apple didn’t face provide constraints for the iPhone 14 Professional and Professional Max.
A graph on income share and market gross sales share of premium smartphones Picture Credit: Counterpoint
The Cupertino-based firm additionally benefitted from Huawei’s decline in China, the report stated. Nonetheless, Honor — which spun off from Huawei — registered notable progress with its Magic collection in China. The model has world ambitions this yr and not too long ago launched flagship gadgets together with a foldable on the Cellular World Congress (MWC) held in Barcelona.
Whereas each Honor and Google grew greater than 100% within the final yr, their general contribution to the market stays round 1%. So they’re nonetheless considerably smaller gamers within the greater image. Different corporations like Samsung and Xiaomi registered a decline in gross sales of 5% and 44% respectively. Nonetheless, the analytics agency talked about that foldable — which will supposedly develop by 52% this yr — stays a vibrant spot for Samsung.
Picture Credit: Counterpoint
Counterpoint analyst Varun Mishra stated that folks shopping for premium smartphones had been prepared to pay additional for the longevity of a tool and higher options. He additionally talked about that due to that phase with telephones above $1,000 grew 38% year-on-year.
“Regardless of the powerful market circumstances in 2022, prosperous shoppers had been extra resistant to the macroeconomic difficulties than clients from the decrease finish. Consequently, gross sales within the premium market grew, whereas these within the entry and mid-tier segments declined. Additionally, as smartphones turn out to be extra central to their lives, individuals are able to spend extra on their gadgets and retain them for an extended interval,” he stated.
Notably, customers in growing markets additionally preserve upgrading to a premium smartphone — particularly people who’re on their third or fourth machine. Corporations like Apple, which primarily operates within the premium phase, have turned their concentrate on markets like India. Lately, Bloomberg reported that the corporate has made India a separate gross sales area.
Whereas Apple (and by proxy iOS) enjoys a snug majority within the premium phase, the launch of foldable gadgets this yr can provide Android a chance to claw again some market share. Alternatively, analysts assume that Apple will enhance the value of Professional fashions launching this yr giving the corporate an edge when it comes to income.
