Premium smartphone sales reached a new height in 2023, but Apple is unlikely to be completely satisfied with how the iPhone performed sales-wise. The company reportedly lost market share at the expense of its two fiercest competitors, according to a new analysis shared by Counterpoint Research.
According to numbers compiled by the firm, global premium smartphone shipments are estimated to have grown by 6% in 2023 year-over-year. The high-end smartphone segment, defined by devices that sell for more than $600, is estimated to amount to a quarter of all smartphone sales and more than 60% of worldwide revenue. The premium segment continues to make impressive inroads, as the analysis estimates that the overall smartphone market is set to decline moving forward.
Sales of premium smartphones grew from a mere 6% in 2016 to 24% in 2023 as a percentage of the overall smartphone market. According to Counterpoint, the growth primarily stems from emerging markets, where high-end smartphones are increasingly appealing as status symbols, as well as due to seasonal promotions and generous financing options. The ultra-premium segment contributed heavily to this growth, with sales of >$1,000 smartphones accounting for more than a third of total premium phone sales in 2023.
Apple remains uncontested in the global premium smartphone market share, with the research estimating the iPhone’s market share to have topped 71% in 2023. However, this represents a 4% YoY decline compared to 2022, yet Apple’s lead is unlikely to be contested anytime soon with Samsung’s 17% and Huawei’s 5% market shares respectively. The iPhone’s loss translated into the observed gains of Samsung and Huawei, which are likely driven by strong foldable sales from Samsung and the introduction of the Huawei Mate 60 lineup.
The iPhone share decline could be attributed to weaker-than-expected sales in China, which was probably amplified by the surprise introduction of Huawei’s Mate 60 series. Nevertheless, China, India, the Middle East and Africa (MEA), and Latin America have all set new records for premium smartphone sales last year, with India reported to be the fastest-growing market in the world.
