• Friday, March 01, 2024
businessday logo

BusinessDay

Premium smartphone market to rise 6% in 2023 – Report

UK bans smartphones in schools

The global premium smartphone (wholesale price ≥$600) market’s sales are likely to grow by six percent year-on-year in 2023 to hit a new record, according to Counterpoint Research’s Market Pulse Service.

In a statement, the global research firm said the projection contrasts with the decline projected for the overall global smartphone market last year.

Read Also: Africa businesses must leverage technology to upscale – Olatunde

“The premium segment is likely to capture close to one-fourth of the global smartphone market sales and 60 percent of the revenues in 2023. Over the past few years, the premium segment has emerged as a growth area in the otherwise weak market,” the statement said.

It said Apple continues to be the premium market’s undisputed leader but when compared to 2022, its share has declined last year.

“China, India, Middle East and Africa (MEA) and Latin America are likely to set a new record for premium market sales in 2023, with India being the fastest-growing premium market globally.”

Read also: African smartphone market surges by 12% defying economic headwinds

Commenting on the premium market’s growth, Varun Mishra, senior analyst at Varun Mishra, said 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.

“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. Further, these devices are increasingly becoming more affordable due to promotion seasons and financing options,” he added.

In terms of regions, much of the global premium market’s growth in 2023 is being driven by China, Western Europe, India and the MEA regions.

In fact, China, India, MEA and Latin America are likely to see a new record for premium market sales, with India being the fastest-growing premium market globally, according to the firm.

It noted that within the premium market, it is the ultra-premium segment that is driving the growth and that the $1,000 and above price segment has captured over one-third of the total premium market sales in 2023.

“Overall, the premium segment is likely to continue to outgrow the global smartphone market. OEMs that can differentiate themselves and, more importantly, build a strong brand will benefit from this segment’s growth.”