As international smartphone market slows down, the premium segment is up 18%
According to a recent expert report, despite the general decline of the international smartphone market, the premium segment continues to grow. This year, companies such as Apple, Samsung, along with Chinese OEMs, such as vivo, OPPO, Huawei and One Plus turned out to be the market drivers. This clearly demonstrates that more and more brands are coming into this segment.
Experts state that the $800+ ultra-premium segment has been showing the greatest growth. The premium segment starts at the price of $400+. The introduction of the iPhone X in the end of 2017 had given a new jumpstart to the growth in price. Later on, in 2018, new flagship phones by Apple (XS, XS Max), Google (Pixel 3 XL) and Samsung (Note 9) all came above the $800 price level. OEMs managed to increase ASPs (average price points), capably taking advantage of the new price ceiling that Apple established.
Consumers are also now more oriented at spending more on their electronic device, and are also set on spending more time with it. In any case, the premium segment is indeed growing, while the international smartphone sales are decelerating. Experts believe that this premium segment growth is likely to continue in the future. This growth is likely to stem from the introduction of foldable displays and 5G phones, further driving the market rise.
Overall, the premium segment grew by 18%, while the overall market demonstrated a 2% decline last year. Apple’s share of the global premium segment was 51%, while Samsung held 22% and Huawei – 10%. The ultra-premium $800+ segment was dominated by Apple to an even greater extent – it had sold 80% share of the luxury models.
One Plus is the fastest growing company in the affordable premium segment ($400-$600) price range, which is the biggest segment. The company showed record results in India in 2018 and is likely to expand in the US and European markets. Apple, however, still dominates the sales.