iPhone Pro models see continued sales growth as smartphone market flags

While smartphone sales have seen declines recently in general, premium handsets like iPhone 15 Pro and Pro Max should see 6% sales growth to hit a new record for 2023, according to a new report Wednesday.

Apple dominates the premium market, but Huawei and Samsung have made inroads, especially because of foldable handsets — a market segment Cupertino hasn’t entered yet.

Apple continues domination of growing premium smartphone market, but loses some ground

The premium smartphone market is expected to capture about a quarter of the overall smartphone market in 2023 but bring in 60% of its revenues when final last-quarter numbers are finalized, Counterpoint Research’s Market Pulse said in report.

Counterpoint Senior Analyst Varun Mishra made these comments:

There has been a shift in consumer buying patterns in the smartphone market. 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. Further, these devices are increasingly becoming more affordable due to promotion seasons and financing options.

Fastest growth: Hansets costing $1,000 and up

The research counted “premium” phones to be those whose wholesale price is $600 or more, a segment that has grown from 6% of the overall market in 2016 to 24% by the end of 2023. But “ultra-premium” phones that cost $1,000 or more wholesale, like Apple’s top models, are the fastest-growing segment, accounting for a third of the premium market.

There’s no mistaking Apple as the market’s leader, but others ate into its share in 2022.

“This is mainly due to Huawei’s resurrection in China driven by the Mate 60 series,” Counterpoint said. “Samsung has also gained share driven by its S23 and Foldable series. Foldables have also emerged as a differentiator in the premium market.”

Developing countries lead growth

The premium market’s 2023 is most-boosted by China, Western Europe, India and the Middle East and Africa (MEA) regions. And China, India, MEA and Latin America may break sales records, with India in the lead. That lines up with Apple’s recent sales growth there.