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2023 has been a mixed year for the smartphone industry. Overall sales are estimated to decline year-on-year (YoY) globally from 2022. On the other hand, the premium segment—wholesale prices $600 and above—saw record sales last year. Apple remained the undisputed king of premium smartphones.
Sales of premium smartphones estimated to grow six percent in 2023
According to market research firm Counterpoint, the global sales of premium smartphones may have hit a new record in 2023. More detailed and accurate numbers aren’t expected until later this month but early estimates suggest the premium segment saw a shipment growth of six percent last year. It will account for almost one-fourth of all sales—24 percent, to be precise.
If these estimates turn out to be accurate, we are staring at a 3x volume growth of premium smartphones in the market over the past seven years. In 2016, premium models only made up six percent of all global sales. This share grew to 15 percent in 2019 and 21 percent in 2022. While there has been steady growth, the growth in 2023 is against the overall industry trend.
Smartphone sales have declined all through last year, with shipments hitting a decade-low in the third quarter. Industry experts estimate the full-year shipments to be substantially lower than in 2022. So, a six percent growth for the premium segment is noteworthy. In 2020, when the whole industry stagnated due to the pandemic, the premium market remained flat too.
Since we are talking about phones that cost more than $600 in wholesale, the revenue share of the premium segment may reach 60 percent in 2023. This is particularly because the sales in the ultra-premium segment ($1,000 and above) are at an all-time high. India is the fastest-growing premium market globally, though sales have increased worldwide.
“There has been a shift in consumer buying patterns in the smartphone market. Considering the importance a smartphone holds, consumers are willing to spend more to get a high-quality device that they can use for a longer period,” senior Counterpoint analyst Varun Mishra said. “These devices are increasingly becoming more affordable due to promotion seasons and financing options.”
Apple suffered a minor decline but is still the undisputed king
Apple, which only makes premium phones bar for a few SE models once in a while, remains the undisputed king of this segment. It is estimated to capture a whopping 71 percent of the market in 2023. That’s a minor decline from 75 percent in the year before, but nothing to be worried about. Apple’s rivals are nowhere close to it. Samsung follows distantly with a share of 17 percent, up from 16 percent in 2022.
Samsung aims to improve its market share in the premium segment this year. It has brought the Galaxy S24 launch forward by a couple of weeks—rumored to launch on January 17—to compete against the iPhone 15 lineup. The Korean firm has set an internal target of increasing its flagship sales by double digits in 2024. Time will tell whether it can further close the gap with Apple over the next 12 months.
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