Growth of the premium smartphone segment market
The global premium smartphone market is expected to reach $780, a record in the second quarter of 2022. This was mainly driven by a 94 percent increase in sales in the $1,000 and up price segment. The average selling price (ASP) of the global premium phone market rose 8 percent to $780.
The segment contributed more than one-quarter of global smartphone sales and one-fifth of global revenue in 2Q22. It also drove global smartphone ASP to its highest second quarter ever.
Apple's sales rose 114 percent, taking more than 78 percent of the $1,000 and up price segment. As 5G becomes more prevalent, consumers are upgrading their devices. Apple has a large installed base of premium iPhone users transitioning to 5G technology.
Growth in the sector also aided in halting the revenue decline. The global premium smartphone market's revenues were unchanged despite a drop in unit sales. The premium market's revenue contribution to the overall smartphone market increased to 60% in 2Q22 from 58 percent in 1Q22 as lower price levels were more affected by inflationary pressures. Sales in the premium segment decreased by 8% in terms of volume, which was better than the overall smartphone market's 12% decline. The premium market has outpaced the overall growth of the smartphone market for the ninth consecutive quarter.
Apple continued to lead the premium segment with a 57 percent share as the 4G iOS installed base continued to build. Samsung's sales increased by 2 percent, and its share also increased. Share of Chinese OEMs OPPO, Xiaomi and Huawei fell as their domestic market struggled during the second quarter, posting the lowest quarterly sales since the fourth quarter of 2012. However, viva sales rose 59 percent as it surpassed OPPO to become the third largest premium smartphone brand. According to analysts, the increase in the share of "Other" brands was mainly driven by Honor.
Tomić, Dražen. “Rast Tržišta Premium Segmenta Pametnih Telefona | ICT Business.” ICT Business, www.ictbusiness.info/gadgeti/rast-trzista-premium-segmenta-pametnih-telefona. Accessed 11 Sept. 2022.