While overall smartphone sales are expected to fall in 2023, the premium segment, defined as smartphones costing $600 and above, is bucking the trend. According to Counterpoint Research, this elite market will grow by 6%, capturing a quarter of global smartphone sales and a staggering 60% of the annual revenue.
Counterpoint Research has released its Global Premium Smartphone Market share report for 2023, revealing that the premium smartphone market is set to experience a remarkable 6% year-on-year growth in sales. This positive trajectory stands in stark contrast to the overall decline projected for the global smartphone market in the same period. The report suggests that Google’s premium Pixel phones, including the latest Pixel 8 and Pixel 8 Pro, were not sufficient to secure the company a spot among the top players. While Apple and Samsung continue to dominate, Huawei, Xiaomi, and Oppo have also carved out significant shares in the premium smartphone market.
Senior Analyst Varun Mishra commented on the shift in consumer buying patterns, noting that consumers are increasingly willing to invest more in high-quality devices, viewing smartphones not just as functional tools but as status symbols. “Consumers are willing to spend more to get a high-quality device that they can use for a longer period,” explains Varun.
This trend is particularly pronounced in emerging markets, where consumers are jumping directly from mid-priced smartphones to premium ones. “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.” Additionally, affordability is increasing thanks to promotional seasons and financing options.
Apple remains the king of premium phones with 71% market share, but its share has shrunk slightly compared to 2022. Huawei’s resurgence in China thanks to the Mate 60 series, and Samsung’s strong showing with the Galaxy S23 and foldable lines have chipped away at the iPhone maker’s dominance. Foldables, in particular, are proving to be a key differentiator.
Regionally, China, Western Europe, India, and the Middle East and Africa (MEA) are driving the premium surge. Notably, India is the fastest-growing premium market globally, with China, India, MEA, and Latin America all set to shatter their previous premium sales records. Ultra-premium phones, costing $1,000 or more, are fueling this growth, accounting for over a third of all premium sales in 2023.
But, as noted, one significant name is missing from the premium party: Google Pixel. Despite Google’s focus on high-end features and software integration with the latest Pixel 8 and Pixel 8 Pro, its Pixel phones haven’t managed to grab a significant share of the luxury market. Apple, Samsung, Huawei, Xiaomi, and Oppo continue to dominate the upper echelons of the smartphone world.
While Pixel phones have earned acclaim for their camera performance and clean software experience, they haven’t quite cracked the code when it comes to brand cachet and market reach. As the premium segment continues to boom, Google will need to find a way to carve out its niche if it wants to compete with the established giants.
Hillary Keverenge
2122 Posts
Tech has been my playground for over a decade. While the Android journey began early, it truly took flight with the revolutionary Lollipop update. Since then, it's been a parade of Android devices (with a sprinkle of iOS), culminating in a mostly happy marriage with Google's smart home ecosystem. Expect insightful articles and explorations of the ever-evolving world of Android and Google products coupled with occasional rants on the Nest smart home ecosystem.
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