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Global share of premium smartphone market in 2023 vs. 2022
Overall global smartphone shipments are forecast to decline 5% for 2023 to hit the lowest total in almost a decade. Shipments of premium phones are expected to account for 25% of last year’s worldwide unit sales and 60% of revenue. The ultra-premium segment, made up of phones costing more than $1,000, made up one-third of all premium handset sales last year.
Sales of premium handsets have shown strong growth over the years. In 2016, such phones made up 6% of total worldwide sales and should hit 24% for 2023. Counterpoint senior analyst 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.”
Premium smartphones’ share of overall sales has risen sharply over the years
However, not all sales of premium smartphones are made because higher-quality devices last longer. Some buy premium phones to be seen with a status symbol brand. Counterpoint’s Mishra says, “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.”
