The share of premium smartphones in the global market has surged 25 per cent in 2024, up from 15 per cent in 2020 as more consumers opt for high-end devices, a new report said on Monday.
The trend of premiumisation remains strong, with the premium segment growing by 8 per cent year-on-year (YoY), outpacing the overall smartphone market growth of 5 per cent, according to Counterpoint Research’s ‘Global Handset Model Sales Tracker’.
Within the segment, ultra-premium smartphones — those priced above $1,000 — now account for over 40 per cent of premium smartphone sales for the first time.
“The premium segment continues to grow as consumers opt for high-end features like better processors, cameras, displays, and GenAI features, for an overall better user experience,” Karn Chauhan, Senior Research Analyst at Counterpoint Research said.
He added that the longer software support and future-ready hardware have ensured the longevity of these smartphones, further justifying their higher prices.
“With current premium smartphone users likely to stay in the price-band and newer users entering, the segment will sustain growth,” Chauhan mentioned.
Since 2020, the premium smartphone segment has expanded significantly in emerging markets with a growth over 5x in India and 2.5x in Latin America.
This surge has been driven by changing consumer preferences toward top brands, coupled with easier financing options and trade-in offers.
Apple has been the biggest beneficiary of this shift with a 67 per cent market share in 2024, the report added.
However, this was a decline from 72 per cent in the previous year, as competitors like Samsung, Huawei, and Xiaomi gained traction.
Samsung held an 18 per cent share with strengthening its position in the premium category.
Smartphone brands are prioritising profitability over sheer sales numbers, leading to a higher number of premium smartphone models available.
In 2024, nearly 300 premium smartphone models were active in the market, even as the total number of smartphone stock keeping units (SKUs) — a crucial part of organising and monitoring merchandise in the retail and e-commerce industries — continued to decline.
The United States remained the largest premium smartphone market in 2024, contributing 25 per cent to global sales, the report said.
(With inputs from IANS)
