Global Premium Segment Archives

Global Premium Smartphone Market Sales Reach Highest Ever in 2021

Beijing, London, San Diego, Buenos Aires, New Delhi, Seoul, Hong Kong – March 22, 2022

The global premium (>$400 wholesale ASP) smartphone market sales grew 24% YoY in 2021 to reach their highest ever level, according to Counterpoint Research’s Market Pulse Service. The growth in the premium segment outpaced the 7% YoY growth in the overall global smartphone sales in 2021. The premium segment alone contributed to 27% of the global smartphone sales, its highest ever share.

Global Premium (>$400) Smartphone Market Sales Contribution, 2016-2021

Source: Counterpoint’s Global Monthly Handset Model Sales (Sell-through) Tracker

Commenting on the premium market growth in 2021, Research Director Tarun Pathak said, “The premium market growth in 2021 was driven by a mix of factors, including replacement demand, OEM strategies and supply chain dynamics. Upgrades to the affordable-premium segment in emerging economies and replacement demand for 5G devices in advanced economies continued to drive growth. OEMs including Apple, OPPO, vivo and Xiaomi were aggressive in capitalizing on the premium market gap left by Huawei, especially in China and Western Europe, driving growth in the segment. Amid the supply chain woes, the ecosystem players also prioritized the premium segment devices due to increased margins and profitability. The growth rate was also somewhat higher in 2021 due to the sales and launch schedules in 2020 being impacted by the pandemic.”

In terms of OEMs, Apple continued to lead the market, reaching the 60% sales share mark for the first time since 2017 driven by strong 5G upgrades for the iPhone 12 and iPhone 13 series. The delayed launch of Apple devices in 2020 also pushed demand to 2021. Apple, with its strong brand power, is in the best position to gain Huawei’s premium smartphone users. This is also indicated by Apple’s growth in China, where the brand reached its highest ever market share in Q4 2021. Apple was the top OEM in the premium segment in every region in 2021.

Global Premium (>$400) Smartphone Sales Share by OEM, 2020 vs 2021

Source: Counterpoint’s Global Monthly Handset Model Sales (Sell-through) Tracker

Samsung’s sales grew 6% YoY in the segment, but the OEM lost share. The S21 performed better than the pandemic-hit S20. The Galaxy Z Fold and the Flip series, which were launched in H2 2021, also performed well, especially in South Korea, North America and Western Europe. However, these gains were somewhat traded off due to the lack of a new Note series and an FE series refresh in 2021. Component shortages also affected the brand’s supply.

OPPO and vivo’s sales more than doubled in the premium segment in 2021, growing 116% and 103% respectively to help them make inroads into the top five premium brands in several regions. The rebranding of Reno in early 2021 helped OPPO capture the affordable-premium segment in China. OPPO has also been gaining steadily in the European market, aiming to fill the gap left by Huawei. vivo’s growth was driven by the X60 and X50 series in China and Southeast Asia.

Xiaomi’s gains were driven by the Mi 11 series. Xiaomi featured in the top-five list for the premium segment in almost all the regions where it operates. Asus also gained with its focus on the niche gaming segment. LG’s exit from the smartphone market helped Motorola, Google and OnePlus gain in the North American Market.

Global Smartphone OEM Rankings by Region, Premium (>$400) Segment, 2021

Source: Counterpoint’s Global Monthly Handset Model Sales (Sell-through) Tracker

In terms of cellular access technology, 5G has become a standard offering across the premium segment. But 4G continues to have share driven by the older iPhones – 11 and SE 2020 – and the Samsung S20 FE. However, as these product lines also transition to 5G in 2022 and 5G also starts to make inroads into developing regions, the share of LTE will decrease further. But Huawei will continue to launch its new devices with LTE capability.

5G vs 4G Penetration in Premium (>$400) Segment

Source: Counterpoint’s Global Monthly Handset Model Sales (Sell-through) Tracker

Commenting on the premium segment outlook, Senior Analyst Varun Mishra said, “Going forward, the premium segment, driven by the replacement demand across markets, is likely to keep growing and outpace the global smartphone market growth. Another large opportunity driving the segment would be the installed base of Huawei users in China, which is approaching its replacement cycle. The competition in China’s premium segment has been strong, but Huawei maintaining its second position in 2021 indicates a future opportunity for other OEMs. Further, the launch of foldables at a lower price than before will also drive growth in the premium market. Samsung has showcased foldables as a viable market. A foldable phone from Apple will be a nod to the robustness of the technology and further drive growth.”

Note: The analysis is based on wholesale ASPs; OPPO excludes OnePlus.

Please reach out to press@counterpointresearch.com for press comments and inquiries.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USA, China, and India.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Tarun Pathak

Varun Mishra

Karn Chauhan

Follow Counterpoint Research

press(at)counterpointresearch.com

vivo’s Strategy Paying off as China Consumers Upgrade Phones

Beijing, Hong Kong, Seoul, Taipei, London, Boston, Toronto, New Delhi – December 10, 2021

The mid-to-high-end segment is increasingly becoming more important for Chinese OEMs as consumers continue to upgrade their smartphones. Higher-value phones also offer more profitability for OEMs, which are witnessing a decline in shipments due to the shrinking of China’s smartphone market.

Over the past year, vivo has made significant progress in China’s mid-to-high-end segment. Its market share in the $500-$599 price band (wholesale price) has risen from 10% in September 2020 to 20% in September 2021. This was driven by the strong performance of the vivo X70 Pro, launched in September. vivo continues to move up the value chain with relentless efforts in research and innovation in camera technology, including entering a strategic partnership with optical technology leader ZEISS.

Counterpoint Research expects China’s smartphone market to see flattish growth in 2021. It is a challenging market for all OEMs, especially given the hardware situation. With a slow market size growth rate, leading OEMs tend to move into the game of revenue and average selling price (ASP).

Further, Chinese OEMs are no longer pleased to be crowned as the “king of affordable”, which means domination in the $157-$314 (CNY 999-CNY 1,999) retail price bands. They are hungry to grab more share in the $470 (CNY 3,000) and above segment. We can call the $470-$630 (CNY 3,000-CNY 4,000) retail price segment the entry premium segment and a strategic territory for all Chinese OEMs.

In Q3 2021, vivo, with all the efforts of strategic portfolio planning and continuous channel evolution, took the leading place in the $500-$599 segment, driven by the outstanding performance of X series.

vivo launched its S series in April 2021, aiming to free the X series from the $470 (CNY 3,000) and below segment. Before that, the X series had blurring boundaries. While it was supposed to be a higher segment series, it was still present in the $470 (CNY 3,000) and below segment. To the market, the X series was meant to increase vivo’s ASP but failed. The S series came at the right time because it was not only different from the Y series, which had already impressed the market with its entry-level products, but also let the X series focus on the premium segment. The restructuring strategy has proved to be a success.

As we may recall, the $500-$599 entry premium segment used to be dominated by Huawei. HONOR, which has been carved out of Huawei as a separate company, sees Apple as a role model, which its CEO George Zhao has admitted publicly a few times, and will definitely launch products in this segment. Xiaomi’s Q3 2021 earnings brief also states that the company is performing well in the premium segment. Therefore, the $500 and above segment will be the next battlefield for all Chinese OEMs.

With the ASP of the Chinese mass market expected to continuously increase in the coming two years, the mid-tier S series holds great strategic importance for vivo.

Please reach out to press (at) counterpointresearch.com for press comments and enquiries.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, USA, China and India.

Background

Analyst Contacts:

Ivan Lam

Mengmeng Zhang

Follow Counterpoint Research
press(at)counterpointresearch.com

Premium Smartphone Market Collapses 8% in Q1 2019, After Apple Shipments Drop 20%

Apple’s declining shipments has pulled down the global smartphone premium segment. Data from Counterpoint Research’s Market Monitor Service for Q1 2019, shows that Apple’s shipments fell 20% year-on-year in Q1 2019, resulting in an 8% YoY decline for the global premium* segment. However, as Apple is losing ground, Samsung is gaining share. During the quarter, Samsung ended up with one-fourth of the global premium segment, its highest ever share over the past year. This was also the first time when Samsung launched three devices instead of the usual two in its S series, thus covering wider price points.

According to our analysis, the trend of users holding onto their iPhones for longer has affected Apple’s shipments. The replacement cycle for iPhones has grown to over three years, on an average, from two years. On the other hand, substantial design changes in the Galaxy S10 series and the better value proposition it offers compared to high-end iPhones helped Samsung close the gap to Apple in the global premium segment.

Apart from Apple’s falling shipments, the sluggishness of the Chinese market was the other key reason for the decline in the global premium segment. Our estimates suggest that almost half of the decline in the global premium segment in Q1 2019 was due to the sluggish Chinese market. However, we expect that as 5G begins to commercialize in the future, the premium segment will grow. In 2019 and 2020, all the 5G devices are expected to launch in the premium segment.

Huawei also captured a double-digit share in the highly concentrated premium market. Impeccable camera quality, AI technology, and superior build quality of its flagship mate and P series drove the growth for Huawei during the quarter. Huawei even surpassed Apple to become the top player in the premium smartphone market in China – a market where Apple has been struggling.

However, the trade ban imposed by the US will restrict its continued global growth. The premium segment contributes to 18% of Huawei’s smartphone shipments. However, these are the most profitable price bands, and declining sales here will cripple Huawei’s marketing capability and R&D investment budgets for the future. Samsung and Apple are expected to gain from the gap created by Huawei in the future.

Exhibit 1: Global Premium Smartphone Shipment Market Share 2019 Q1

Source: Counterpoint Research Market Monitor 2019 Q1

The premium segment remains the most difficult for OEMs to penetrate as it requires brand power to command such a high price across the world, which only a few OEMs possess. The top three players alone capture 88% of the market share in the premium market.

One of the brands that have managed to break into the premium segment is OnePlus, which continued to hold its position in the top five globally backed by OnePlus 6T. The momentum gained would help OnePlus 7, which is likely to outperform the 6 series. OnePlus has been steadily growing in Western Europe. It also held the second position in the premium segment in India, and the OnePlus 6T remained the best-selling premium smartphone during Q1 2019 in the country, a title it has held since its launch. OnePlus also entered in top five in the North American (NAM) market in Q1 2019. This was the second consecutive quarter when OnePlus featured amongst the top five brands in the premium segment globally.

Exhibit 2: Premium Smartphone Segment Rankings of OEMs by Regions 2019 Q1

NAM	MEA	LATAM	WE	CEE	CHINA	APAC Excl China
Apple	Apple	Samsung	Apple	Samsung	Huawei	Samsung
Samsung	Samsung	Apple	Samsung	Apple	Apple	Apple
Google	Huawei	Huawei	Huawei	Huawei	Xiaomi	Huawei
OnePlus	OnePlus	Motorola	OnePlus	OnePlus	vivo	Sony
Motorola	OPPO	Sony	Google	Xiaomi	OPPO	OnePlus

Source: Counterpoint Research Market Monitor 2018

In terms of region, NAM remains the largest market for premium devices with a 30% share of the global market, followed by China (26%) and Western Europe (17%). Chinese players are aggressively entering the European market, where competition is intensifying in the premium segment. Amid the decline, Canada (14%), Russia (15%), Mexico (46%) and Thailand (23%) are some of the markets which showed growth for the premium segment.

*Premium segment >$400. Pricing analysis is based on wholesale pricing

Premium Smartphones Grew 18% in 2018 Despite the Global Smartphone Market Slowdown

Apple leads the premium segment with over half the market, followed by Samsung.

Huawei almost doubled its market share (10%) in the premium segment growing 97% YoY with strong performance by the P20 and Mate 20 series.

Growth of OnePlus drove the India premium market to a record high.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –
Jan 28th, 2019

According to Counterpoint Research’s recent Market Pulse December 2018 report, the global premium smartphone segment* continues to grow faster than the overall smartphone market. The growth for the year was driven by Apple, Samsung and Chinese OEMs like Huawei, OPPO, vivo and One Plus. Brand diversity in the premium segment is increasing.

Exhibit 1: Comparing smartphone growth by price band (annual growth of 2018)

Source: Counterpoint Research Market Pulse

Tom Kang, Research Director at Counterpoint Research, comments “Within the premium segment, the $800+ ultra-premium segment has been growing the fastest. In 2017 it was merely 8% of the premium market (defined as $400+). Ever since the Apple iPhone X was introduced in late 2017, prices have jumped to a new level. Further more in 2018, the new flagships of Apple (XS, XS Max), Samsung (note 9) and Google (Pixel 3 XL) were all launched above the $800 price. OEMs were able to increase the average price points (ASPs), taking advantage of the headroom created by Apple.”

Also, according to Counterpoint’s consumer lens, consumers are now willing to spend more on their device, but at the same time holding on for a longer period. Thus, the overall market growth is slowing, but the premium segment is expanding.

Exhibit 2: Share of $800+ segment rising within premium (≥400)

Source: Counterpoint Research Market Pulse

Varun Mishra, Research Analyst at Counterpoint Research, added “Going forward, the trend of premium smartphones is likely to continue. Introduction of 5G phones, foldable displays and popularity of the so called, affordable premium segment in emerging markets will further drive the growth.”

Market Summary:

The global, premium smartphone segment grew faster (+18%) than the overall smartphone segment (-2%) in 2018. Growth was driven by flagship launches of Global players like Apple, Samsung and Google. Chinese players like Huawei, OPPO and vivo also followed this trend.
Apple led the global premium smartphone segment capturing 51% share of the segment, followed by Samsung (22%) and Huawei (10%).
The $800+ segment was a newly created category by Apple, and it grew the fastest. Apple clearly dominated with more than 80% share in the $800+ ultra-premium price band.
The affordable premium segment, the $400-$600 price-band, was actually the largest volume segment in total premium sales. Although Apple still leads in this segment, the biggest winner was OnePlus.
OnePlus remains one of the fastest growing brands in the $400-$600 segment. The success of OnePlus in India drove the overall premium smartphone shipments in the country to a record number in a single year. The brand is likely to grow as it broadens its reach in the European and US markets.

*Pricing analysis is based on wholesale pricing not retail pricing. The Premium segment is above $400 in wholesale price.

The comprehensive and in-depth December 2018 Market Pulse is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

Analyst Contacts:

Tom Kang
tom@counterpointresearch.com