Highlights

• Apple retains market leadership with 71% share in the premium smartphone segment in 2023.
• Samsung holds firm at second place, showcasing growth with its innovative smartphone models.
• Huawei’s market share climbs to 5%, indicating a significant comeback despite sanctions.

In 2023, the global premium smartphone market witnessed significant developments, underlined by Apple’s continued dominance but also surprisingly by Huawei’s remarkable resurgence.

Apple’s Dominance in the Premium Segment

The report from Counterpoint is quite detailed so we are breaking it down for you.

Apple, as expected, has maintained its position as the market leader in the premium smartphone segment, defined by devices priced over $600.

The tech giant held a staggering 71% market share in 2023, though it’s noteworthy that this figure saw a slight decrease from 75% in the previous year.

The premium segment, crucial to the smartphone industry, is not just about volume but also significantly contributes to the industry’s revenue.

In 2023, it was expected to account for nearly one-fourth of global smartphone market sales and a substantial 60% of the industry’s revenue.

Particularly impressive was the ultra-premium segment, where smartphones cost more than $1,000, capturing one-third of total premium handset sales last year.

Samsung and Huawei’s Market Positioning

Amidst Apple’s dominance, Samsung maintained its second-place standing with a 17% share in the premium market, a slight increase from 16% in 2022.

Samsung’s consistent performance can be attributed to its innovative offerings, such as the Galaxy S23 series and its latest foldable phones, which have been well-received by consumers.

However, the most striking narrative of 2023 was Huawei’s resurgence.

Despite facing sanctions, Huawei made a significant comeback with its Mate 60 series, increasing its market share to 5%, up from 3%.

The Chinese smartphone giant is still a household name in the biggest smartphone market in the world and that has to have at least some impact in future predictions.

Other notable players in this space, like Xiaomi and Oppo, also made their presence felt, though with smaller market shares.

The Counterpoint report is showing that consumers are increasingly seeking high-quality, durable devices and are willing to invest more in their smartphones.

This bodes well for the overall smartphone market which is still grappling with falling demand globally.

Varun Mishra, a senior analyst at Counterpoint, sheds light on this trend: “There has been a shift in consumer buying patterns in the smartphone market,” he said. “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.”

FAQs

What was Apple’s market share in the premium smartphone segment in 2023?

In 2023, Apple held a dominant 71% share in the premium smartphone market, a slight decrease from 75% in the previous year, showcasing its continued market leadership.

How did Samsung perform in the premium smartphone market in 2023?

Samsung maintained its position as the second-largest player in the premium market, with a 17% share, marking an increase from the previous year, thanks to its innovative products like the Galaxy S23 series and foldable phones.

What was the impact of Huawei’s comeback in the premium smartphone market?

Despite facing sanctions, Huawei made a significant comeback in 2023, increasing its market share to 5%, up from 3%, indicating a shift in consumer preferences and the brand’s resilience.

What is the significance of the ultra-premium smartphone segment in the market?

The ultra-premium segment, where smartphones are priced above $1,000, played a significant role, accounting for one-third of total premium handset sales, highlighting consumer willingness to invest in high-end devices.

What caused the recent decline in Apple’s stock value?

Apple’s stock recently experienced a 3.6% decline, closing at 185.64, primarily due to analyst concerns about the demand for the upcoming iPhone 16 and the overall market outlook for Apple in 2024.

What changes did Barclays analyst Tim Long make to Apple’s stock rating?

Tim Long, an analyst from Barclays, downgraded Apple’s stock from ‘equal weight’ to ‘underweight’, also reducing the price target from 161 to 160.

This change reflects growing concerns about Apple’s future performance and sales.

How have iPhone 15 sales been described, and what is the outlook for iPhone 16?

iPhone 15 sales have been described as “lackluster” by analysts, casting a shadow over the anticipated performance of the iPhone 16.

There are concerns that the iPhone 16 might not significantly boost demand or sales.

What challenges are currently facing Apple’s hardware and services segments?

Apple’s hardware categories, other than the iPhone, are showing signs of stagnation.

Additionally, the services segment, although profitable, faces regulatory scrutiny and is projected to grow by no more than 10% this year.

How is the introduction of Apple Vision Pro expected to impact Apple’s growth in the wearables market?

Priced at $3,499 and set for release in early 2024, the Vision Pro combines virtual and augmented reality, catering to entertainment, communications, and productivity applications.

While the product faced initial skepticism, it opens a new hardware platform for Apple, potentially driving growth in the wearables segment. The key to its success could lie in unique applications like ‘spatial video,’ as suggested by analysts.

What implications does the recent ITC ruling on Apple Watch Series 9 and Ultra 2 have for Apple’s future in the wearables sector?

The recent ruling by the U.S. International Trade Commission, which declared that Apple’s latest smartwatches infringed on patents from Masimo, poses a significant challenge for Apple.

The decision, which impacts the sales of Apple Watch Series 9 and Ultra 2, comes at a time when revenue from the Wearables, Home and Accessories unit has seen a decline.

Who qualifies for the Apple Family Sharing settlement?

To be eligible, you must have been part of an Apple Family Sharing group between June 21, 2015, and January 30, 2019, were a U.S. resident during that time, and purchased a third-party app subscription via the App Store.

How can I submit a claim for the Apple Family Sharing settlement?

Claims can be submitted by visiting the Walter Peters vs Apple Inc. settlement website.

You can choose to file your claim online or by mail using the Payment ID and PIN provided in the notification email, or still file a claim if you didn’t receive an email.

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