- The worldwide premium smartphone market ($400 and above wholesale worth) common promoting worth (ASP) grew 8% YoY to succeed in $780, a second-quarter document, in Q2 2022.
- This was primarily pushed by the 94% YoY gross sales progress within the $1,000 and above worth phase.
- When it comes to gross sales, the premium market continued to outperform the general world smartphone marketplace for the ninth consecutive quarter.
- Apple captured 57% of premium smartphone market gross sales, whereas vivo surpassed OPPO to turn out to be the third largest premium smartphone model for the primary time.
Beijing, London, San Diego, Buenos Aires, New Delhi, Seoul, Hong Kong – September 1, 2022
The worldwide premium smartphone market ($400 and above wholesale worth) common promoting worth (ASP) grew 8% YoY to succeed in $780, a second-quarter document, in Q2 2022, based on Counterpoint Analysis’s Market Pulse Service. This was primarily pushed by the 94% YoY gross sales progress within the $1,000 and above worth phase. The phase alone contributed to over one-fourth of premium smartphone gross sales and over a fifth of worldwide smartphone revenues in Q2 2022. The expansion of the phase additionally drove the worldwide smartphone ASP to its highest second quarter ever.
Supply: Counterpoint’s International Month-to-month Handset Mannequin Gross sales (Promote-through) Tracker, August 2022
Commenting on the expansion of the $1,000 and above worth phase, Senior Analyst Varun Mishra stated, “As 5G is changing into extra prevalent, customers are upgrading their gadgets. That is particularly important, as the big put in base of premium iPhone customers upgrades to 5G. Apple’s gross sales grew 114% YoY, capturing over 78% of the $1,000 and above worth phase. Shoppers whose funds weren’t affected by the pandemic have been utilizing the additional disposable revenue created resulting from restricted journey to purchase dearer gadgets, together with smartphones. Throughout the pandemic, customers additionally realized the significance of smartphones and began seeing extra worth in upgrading their gadgets. One other fascinating issue is that this development within the ultra-premium market is ubiquitous throughout areas, regardless of inflationary pressures. It’s because prosperous customers will not be affected by the present financial headwinds. Therefore, the low-to-mid-price phase has been hit laborious by the latest macro headwinds whereas the high-price phase nonetheless appears strong, additional boosting the ASPs. Additionally, the rising variety of financing schemes and a rising ecosystem of trade-ins and EMIs are additionally serving to customers to improve their gadgets with out paying the whole worth upfront.”
The phase’s progress has additionally helped in arresting income declines. Regardless of the unit gross sales decline, world premium smartphone market revenues remained flat YoY. As cheaper price tiers received affected extra by inflationary pressures, the premium market’s income contribution to the general smartphone market elevated to 60% in Q2 2022 from 58% in Q1 2022.
When it comes to volumes, gross sales within the premium phase declined 8% YoY in Q2 2022 however carried out higher than the general smartphone market, which declined 12%. That is the ninth consecutive quarter during which the premium market has outperformed total smartphone market progress.
Apple continued to steer the premium phase with a 57% share because the 4G iOS put in base continued to improve. Gross sales and promotions within the US remained sturdy by way of the quarter. There was no proof of any macroeconomic impression on demand. Apple additionally continued to efficiently onboard new customers as switcher progress hit a contemporary document throughout the quarter, largely pushed by sturdy progress in rising economies.
International Premium (>$400) Smartphone Gross sales Share by OEM, Q2 2021 vs Q2 2022
Supply: Counterpoint’s International Month-to-month Handset Mannequin Gross sales (Promote-through) Tracker
Samsung’s gross sales grew 2% YoY and its share additionally elevated because the S22 Extremely continued to be the best-selling Android smartphone within the premium phase for the second consecutive quarter.
The share of Chinese language OEMs OPPO, Xiaomi and Huawei declined as their dwelling market struggled by way of Q2 2022, clocking the bottom quarterly gross sales since This fall 2012. Nonetheless, vivo’s gross sales grew 59% YoY because it surpassed OPPO to turn out to be the third largest premium smartphone model in Q2 2022 for the primary time ever. Most of this progress got here from China, pushed by the X80, S15 and iQOO 9 sequence. vivo additionally grew to become the second largest premium smartphone model in China for the primary time ever. It was additionally the most important smartphone OEM in China within the reasonably priced premium phase ($400-$699), pushed by the X80 sequence.
The rise within the share of “Others” manufacturers was primarily pushed by HONOR. The model has been quickly increasing in China over the previous couple of quarters. The HONOR 70 was its best-selling mannequin within the premium phase, adopted by the Magic 4. The abroad markets’ contribution to HONOR’s gross sales can be prone to enhance because the model enters new geographies.
Going ahead, the premium phase is prone to proceed to outpace the worldwide smartphone market. Commenting on the outlook, Analysis Director Tarun Pathak stated, “The second half of the 12 months may also be marked by key launches like the brand new Fold sequence from Samsung and the brand new iPhone sequence from Apple, that are prone to drive progress within the premium phase. Chinese language OEMs may also begin to deliver their foldable gadgets to the worldwide markets, additional increasing the premium market portfolio. Greater BoM and operational prices backed by the uncooked materials costs remaining excessive, rising inflation, and volatility in overseas change charges have been placing additional stress on OEMs to take care of profitability, which will likely be mirrored within the rising ASPs. All these components will carry on driving the ASPs excessive in 2022. We consider the premiumization development has already began throughout a number of markets, and it’s right here to say.”
Notes: The evaluation is predicated on wholesale ASPs. OPPO contains OnePlus and vivo contains IQOO.
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Counterpoint Expertise Market Analysis is a world analysis agency specializing in merchandise within the TMT (expertise, media and telecom) business. It providers main expertise and monetary companies with a mixture of month-to-month reviews, custom-made initiatives and detailed analyses of the cell and expertise markets. Its key analysts are seasoned specialists within the high-tech business.
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