Consumers turned out to be more interested in premium smartphones in 2023. In this segment, where models start at $600, increased six percent from a year earlier. The trend can be seen across multiple technology devices.
The increasing sales in the premium segment are shown in a report by Counterpoint Research. It is also the most important segment for smartphone sellers, as the report indicates that these sales generate 60 percent of the total revenue in the smartphone industry.
The biggest winner in the segment appears to be Apple. The iPhone maker is named as “the undisputed leader in the premium market”. The researchers do note here that the share in the premium segment compared to all smartphone makers has decreased for Apple compared to 2022.
We add that in its most recent models Apple only releases devices that are immediately part of the premium category. In the premium segment, the survey counts all devices above $600.
‘Consumers use the same device longer’
According to the report, consumers are willing to pay more because of the quality they get in return, which ensures that the device lasts longer. It further notes that an expensive smartphone is a status symbol for many and that devices are becoming more accessible to a wider audience through promotions and payment options to pay smartphones over several months.
Many of the sales, therefore, immediately place themselves in the most expensive smartphone category. For example, the segment with devices above $1,000 accounts for more than a third of total sales in 2023. Samsung is the second largest smartphone seller in the premium segment and thus comes after Apple. That bodes well for the upcoming launch of the Samsung Galaxy S24 series.
Also read: Samsung presents new Galaxy S24 smartphones already end this month
Smartphone sales decline
The cheaper series of smartphone manufacturers do pay the price of rising sales of the premium segment. In fact, sales of the overall smartphone market are declining. Research firm IDC already made the prediction at the end of November 2023 that by 2023, the total number of devices shipped will decline 3.5 percent annually.
IDC does note, however, that the market is recovering. The same story holds true for the GPU market. For sales of these cards, the historically low sales figures which marked the pandemic period are officially over. Although even there, the market is still recovering. Perhaps new and yet-to-be-explored avenues for AI PCs still offer good opportunities for high-end GPUs and overall sales in the GPU market.
1 day ago
