Introduction: As we reflect on the closure of the mobile phone market in 2023, an intriguing paradox emerges—while overall phone sales are decreasing, the market share of premium smartphones (priced above $600, as per Counterpoint Research) is steadily increasing. Within this landscape, there exists a clear dominator, a follower, and several contenders vying for a share of the pie left by the dominant players. As you read further, the identity of these major players won’t be a surprise: Apple and Samsung.
The Duopoly’s Firm Grip: Apple stands as the undisputed dominator, boasting a commanding 71% market share, a figure that has even grown since the previous year. On the other side, Samsung plays the role of a strong follower, maintaining a stable 17% market share compared to 2022.
Together, these tech giants control nearly 90% of the premium market, leaving the remaining 10% to be contested among other manufacturers, notably Huawei, Xiaomi, and Oppo. The remaining players, including OnePlus, ZTE, Google, Vivo, Honor, and Motorola, collectively fall under the “Others” category, accounting for a modest 4% market share.
Huawei’s Remarkable Resilience: Huawei’s journey is noteworthy. Despite the setbacks from the China-US trade war, which significantly impacted its global presence (reduced to residual in Spain), Huawei has managed to achieve results surpassing expectations. This success is attributed partly to the support received domestically, allowing the company to gain market share in the past year.
Growth Trajectory of the Premium Segment: The premium smartphone market has experienced substantial growth in recent years, escalating from a mere 6% in 2016 to an impressive 24% in 2023. However, it’s important to note that the figures for the last quarter are still estimations.
This growth can be attributed to both the inflation in the overall mobile phone market, which has essentially phased out the low-end segment, and the fact that what is considered the “premium” market, according to the $600 benchmark, has expanded. While the definition of “premium” at $600 might be debatable, it accentuates the market trends presented by this market research firm. Had the threshold been $1,000, the market dynamics would likely be more polarized, with Apple and Samsung further reinforcing their dominance.
The Rise of the “Ultrapremium” Market: Within this premium smartphone market, a segment termed “ultrapremium” is identified as a key driver of growth, representing more than a third of the market. Notably, the consultancy suggests that this segment is likely to continue expanding. Manufacturers with a sufficiently robust brand image that convinces customers to invest nearly four figures in their phones will hold a distinct advantage in this evolving landscape.
Conclusion: In conclusion, the premium smartphone market is witnessing a fascinating interplay of dominance, resilience, and evolving consumer preferences. As Apple and Samsung maintain their stronghold, other players must strategically position themselves to tap into the growing “ultrapremium” segment. The dynamics of this market are not only influenced by technological advancements but also by shifting perceptions of what constitutes a premium device in an ever-changing industry.