Emir BardakçıThe global luxury smartphone industry continues its growth, with its share increasing significantly in 2024. The proportion of upper-end phones, with a value of over $600, has risen from 15% of global smartphone share in 2020 to 25%. The rise has been led by major players including Huawei, Xiaomi, vivo, and Honor, whose growth has been in double-digit.
Notably, the premium segment of more than $1,000 contributes more than 40% of the high-end smartphone space. This indicates a boom in demand from consumers for flagships with the best of technology. Conversely, Apple remains ahead of the pack in the premium space, albeit its share has fallen from 72% down to 66%, leaving space for other brands such as Samsung, Huawei, and Xiaomi.
China Closes the Gap in the Global Premium Sector
The United States remains the leader of the world with its largest high-end smartphone market, with a global share of 25%, headed by the steady performance of the Apple iPhone and the Samsung Galaxy S and Z series. But China is rapidly catching up with a 24% global share of high-end markets. The growth has been led by Huawei, Xiaomi, vivo, and Honor, with all of them registering double-digit annual growth in the sale of premium phones.
In emerging markets of India and Latin America, demand for higher-end phones has risen exponentially. The upper-end segment has grown more than 5x in India and 2.5x in Latin America from 2020, driven by affordable financing, trade-in offers, and greater brand loyalty.
Xiaomi’s Strategy in the High-End Sector
Xiaomi has been gaining traction in the upper-end segment with its flagship Xiaomi 14 series and upcoming Xiaomi 15 range. The company’s forays into Leica-driven cameras, artificial intelligence-driven software, and top-end material use have established its presence in the upper-end space. Besides, HyperOS 2.0, the company’s new software environment, can be expected to take the user experience up a notch and also boost its competitiveness against Apple and Samsung.
With Apple’s dominance somewhat on the decline and consumers’ demand for premium phones on the rise, 2024 becomes a decisive time for players like Xiaomi and Huawei to gain more momentum in the higher-end segment.
Source: IT Home, Counterpoint Research
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