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Sales for Apple’s iPhone grew 6% year-over-year in the premium (≥$600) smartphone market

Although overall global smartphone sales in 2022 fell 12% year-over-year (YoY) due to “macroeconomic difficulties,” global premium (≥$600 wholesale price) smartphone sales climbed 1% YoY in contrast, according to a new Counterpoint Research report. And that’s good news for Apple.

Sales for Apple’s iPhone grew 6% YoY in the premium market, expanding its share to capture three-fourths of the total sales in the segment. Counterpoint says Apple could have grown more, if not for the iPhone 14 Pro and Pro Max supply disruption during the peak holiday season in 2022. The iPhone maker also gained from Huawei’s decline in China.

Apple was followed by Samsung whose sales declined 5% YoY in 2022. Counterpoint says Samsung lost out on the China market opportunity due to its weak presence in the region. The launch of the Galaxy S22 series in 2022 also took place much later than that of the S21 in 2021. However, the growth of foldable smartphones has been a bright spot for Samsung, according to Counterpoint.

The research group says that the increase in premium smartphone sales  allowed the price segment to contribute to 55% of the total global smartphone market revenue for the first time ever. The premium segment, which has been consistently outperforming the global smartphone market, captured more than one-fifth of total global smartphone sales as well.

Counterpoint says that, in terms of penetration of operating systems, Android has been ceding share to iOS in the premium segment. iOS captured three-fourths of all smartphone sales in the premium market. Considering its revenue share and consistent growth trajectory, the premium market is the most important segment.

For Apple, the growth in mature markets came from the upgrades in its installed base. The “stickiness of the iOS ecosystem with multiple devices and services is high,” according to Counterpoint. 

The research group adds that, if an iPhone user also owns an Apple Watch or Mac, the individual’s next smartphone upgrade will likely be another iPhone. Also, because of Apple’s aspirational brand value and step-by-step expansion, its sales have been growing in emerging economies as well. Android’s loss of share to iOS in the premium segment is also one of the reasons for Google’s smartphone push, per Counterpoint.

Article provided with permission from AppleWorld.Today
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