- Smartphones above $600 stood at 55% and 21% revenue and sales wise
- Premium smartphone sales unfazed by global economic downturn
- Google more than doubled its premium smartphones market share, now standing at 1%
- Android OEMS lean on foldable phones to boost growth in 2023
Revenue and sales of high-end smartphones continued their momentum despite an overall slump in smartphone sales globally, according to a recent report by Counterpoint Research
The report indicates that shipments of smartphones above the $600 price range grew a mere 1% in 2022 compared to a year earlier. The bigger news, however, is that revenue generated from these sales grew to an all-time high of 55% compared to 49% in 2021. The research adds that global premium smartphones shipments stood at 21% of all smartphones sold worldwide.
Counterpoint Research pegs Apple as the biggest winner of these trends. The report estimates Apple to have captured a staggering 75% of sales in the premium smartphones segment, a 6% increase compared to 2021. The report adds that Apple has notably benefited from Huawei’s decline in China, and could have extended its market lead further if it was not for the iPhone 14 Pro and 14 Pro Max supply bottlenecks.
Samsung and Huawei sales fell 5% and 44% year-over-year, respectively. The report blames Samsung’s weak presence in China as the main culprit for the reported decline, with the exception of foldable phones remaining a bright spot for the company.
While both Honor and Google’s share of the premium smartphone segment more than doubled in 2022 from 2021, they still only account for around 1% each of premium smartphone sales, the report added. Google’s growth was driven by good sales of its premium Pixel 6 Pro and 7 Pro devices.
The report explains that “despite the tough market conditions in 2022, affluent consumers were more immune to the macroeconomic difficulties than customers from the lower end.” Consumers are also holding on to their devices for longer and are dependent on them for more aspects in their lives, thus willing to spend more to get their hands on a longer-lasting device. Consequently, smartphones retailing above $1000 sold 38% more units in 2022 compared to a year earlier.
The report predicts that Android OEMs are ready to claim a slice of Apple’s market share in 2023, as more manufacturers are expected to expand their foldable phones offerings beyond China. Apple is also eyeing the release of a more premium “Ultra” iPhone that could be ready in time for its 2024 lineup.
