The average selling price in global premium smartphone market ($400 and above) grew 8% (year-on-year) to reach a record $780 in the June quarter this year, a new report showed.
Apple captured 57% of premium smartphone market sales, while Vivo surpassed OPPO to become the third largest premium smartphone brand for the first time.
This was driven by the 94% (YoY) sales growth in the $1,000 and above price segment.
In terms of sales, the premium market continued to outperform the overall global smartphone market for the ninth consecutive quarter, reports Counterpoint Research.
The segment alone contributed to over one-fourth of premium smartphone sales and over a fifth of global smartphone revenues in Q2 2022.
“As 5G is becoming more prevalent, consumers are upgrading their devices. This is especially significant, as the large installed base of premium iPhone users upgrades to 5G. Apple’s sales grew 114 per cent YoY, capturing over 78% of the $1,000 and above price segment,” said senior analyst Varun Mishra.
Consumers whose finances were not affected by the pandemic have been using the extra disposable income created due to restricted travel to buy more expensive devices, including smartphones.
As lower price tiers got affected more by inflationary pressures, the premium market’s revenue contribution to the overall smartphone market increased to 60% in Q2, from 58 per cent in Q1 this year.
Samsung‘s sales grew 2% YoY and its share also increased as the S22 Ultra continued to be the best-selling Android smartphone in the premium segment for the second consecutive quarter.
“The second half of the year will also be marked by key launches like the new Fold series from Samsung and the new iPhone series from Apple, which are likely to drive growth in the premium segment,” said Research Director Tarun Pathak.
Chinese OEMs will also start to bring their foldable devices to the global markets, further expanding the premium market portfolio, he added.