Apple's iPhone sales were negatively impacted in 2023 by growing competition from Samsung and a resurgent rivalry from Huawei, but still, according to a recent analysis, Apple maintains supremacy within the distinguished sector of high-end mobile devices despite confronting impediments.

The market analysis further reveals a growing trend: rising consumers are now inclined to invest in high-end smartphones.

High-End Smartphones' Growing Market

The recent Counterpoint Research report indicates that high-end smartphones, valued at over $600 wholesale (typically over $800 retail), accounted for roughly 25% of global smartphone purchases last year.

Counterpoint's Market Pulse Service projects a 6% Year-over-Year (YoY) expansion for premium smartphones in 2023, diverging from the expected overall decline in the global smartphone market.

It is projected that in this current year, as premium phones are anticipated to account for nearly a quarter of the worldwide smartphone sales, they will produce 60% of the total revenues in the global market for such devices.

Despite a sluggish market, the premium segment continues to flourish. Counterpoint's data illustrates a steady growth trajectory, with the premium segment growing from 6% in 2016 to a substantial 21% of the global market by 2022.

Historically dominated by budget phones, developing markets have experienced a notable transition supported by promotions and financing. Consumer behavior in the smartphone realm has shifted, emphasizing a willingness to invest in high-quality devices for extended use.

Access to cutting-edge flagship models is increasingly regarded as a status symbol, particularly in emerging markets where consumers leap from mid-range to premium categories.

Promotions and financing have bolstered accessibility to these top-tier phones.

Apple Maintained its Lead But Dropped Some Sales

In 2023, the technology giant Apple retained its dominant position in the worldwide smartphone industry. However, its share decreased compared to the previous year, partly attributed to rising foldable phone popularity, per Counterpoint Research.

Apple closed the year with a 71% premium smartphone market share, down from 75% in 2022. This drop is linked to Huawei's resurgence with the Mate 60 series in China and Samsung's gains with the S23 and Foldable series.

Foldable devices have become a distinguishing factor in the premium market, enhancing sales. Both Samsung and Huawei experienced slight increases in their high-end market segments from the previous year, with each company's portion of that sphere expanding by 1% and 2% in that order.

While observing a modest rise in its share of the premium sector during 2023, Xiaomi concurrently noted some growth in that market.

Although global smartphone sales face difficulties, the high-end section is anticipated to rise by 6% annually in 2023, per Counterpoint's initial data for the last quarter of that year.

The research highlights a shift in consumer purchasing patterns, indicating a willingness to invest in high-quality devices for more prolonged use.

Moreover, owning the latest flagship devices has become a status symbol, notably in emerging markets where consumers transition directly from mid-range to premium categories.

Counterpoint Research indicates surging premium market sales in China, Western Europe, India, and the MEA regions, projecting record sales in China, India, and Latin America, particularly in the ultra-premium segment, devices priced at $1,000 or higher.

India's rapid growth sets it apart as having the fastest-expanding market worldwide. This growth trajectory is anticipated to persist, surpassing overall smartphone market growth.

Apple faced tough competition from Samsung and resurgent rivalry from Huawei in 2023, impacting iPhone sales. Yet, according to a recent analysis, Apple maintains supremacy within the distinguished sector of high-end mobile devices despite confronting impediments.

The study reveals a growing trend: rising consumers tend to invest in high-end smartphones, shaping a promising market trajectory.