Apple is still the heavyweight No.1 but sold fewer premium phones in 2023 than previously

There’s a race who’ll sell the most premium phones in a year, and so far, Apple has been the champion.

In 2023, the Cupertino heavyweight is still king, but the crown is getting heavier and as a matter of fact, Apple sold fewer premium iPhones last year than in 2022 (via 9to5Mac).

There’s a new Counterpoint Research report that shows growing competition from Samsung and the resurrected Huawei threat is real and it’s affecting Apple’s sales.

What is a premium phone?

According to the Counterpoint Research report, there’s a simple way of categorizing phones into premium and non-premium. Instead of benchmark testing, comparing chips and wireless charging speeds, they count a phone as a premium if its wholesale value is more than $600 (typically equating to a retail price above $800).

Out of all phones sold in 2023, almost a quarter (24% to be exact) are premium and that’s an all-time record. Their share is growing fast.

The global premium smartphone (again, phones that are more expensive than $800 in the store) market’s sales are likely to grow 6% year-over-year in 2023 to hit a new record. Back in 2016, the premium phones’ market share was just 6%, in 2017 - 8%, and in 2018 - 13%.

Despite being only 24% of the total sales, premium phones are expected to account for 60% of the 2023 revenue.

There has been a shift

“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”, reads the report

Apple continues to be the premium market’s undisputed leader. However, compared to 2022, Apple’s global market share in the premium smartphone market last year declined from 75% to 71%, with corresponding gains by Samsung and Huawei. Samsung’s gains were attributed to the growing appeal of folding phones – a market Apple has yet to invade and clash with foldable pioneers.