India Fastest Growing Premium Phone Market Globally: Counterpoint

China, India, Middle East and Africa (MEA) regions as well as Latin America are expected to see a new record for premium market sales, with India being the fastest-growing premium market worldwide, as per Counterpoint’s report on global premium smartphone market in 2023.

As per the report, the growth in the premium market is predominantly propelled by the ultra-premium segment. In 2023, the price segment of $1,000 and above commands over one-third of total premium market sales.

Overall, the premium segment is likely to continue to outgrow the global smartphone market. OEMs that can differentiate themselves and, more importantly, build a strong brand will benefit from this segment’s growth.

According to Counterpoint, the global premium smartphone market is projected to witness a 6% year-on-year growth in 2023. This stands in contrast to the overall decline expected in the global smartphone market for the year. 

Premium segment smartphones are anticipated to secure approximately one-fourth of global smartphone market sales, contributing to around 60% of total revenues in 2023. Notably, within the premium smartphone market, the ultra-premium segment ($1,000 and above) accounts for over one-third of total premium market sales in 2023.

While Apple maintained global dominance in the premium segment in 2023, its market share dipped from 75% in 2022 to 71% in 2023. Counterpoint attributes this decline to Huawei’s resurgence in China, particularly with the Mate 60 series smartphones.

Samsung held onto its second position in the global premium market in 2023, increasing its market share to 17% from the previous year’s 16%. The growth was fueled by the success of the Galaxy S23 series and Foldable series.

In Q2 2023, Apple captured 49% of the India’s 12 Mn smartphone shipments, while Samsung’s share declined to 45%.

“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,” said senior analyst Varun Mishra.

This development comes at a time when the Indian government aims to position the country as a global hub for electronics production, particularly smartphones. Concurrently, there is a push for Chinese smartphone companies dominating the domestic market to establish manufacturing plants in India. This strategic initiative, coupled with ongoing tensions between Beijing and Washington, has led iPhone manufacturer Apple to shift a portion of its production operations to India.

The company is now looking at producing iPhones worth INR 1 Lakh Cr in India by the end of March 2024.

Amid all this, Apple also became the largest smartphone exporter from India, with South Korea’s Samsung at the second place.

Meanwhile, another Chinese manufacturer Xiaomi, which is currently manufacturing wireless audio products in India, is also said to be looking to start smartphone production in the country. Tech giant Google has also announced its plans to begin production of Pixel smartphones in India.

Motorola, the smartphone brand owned by China’s Lenovo, is also looking to double its exports from India next year by ramping up shipments to North America.