Last month Patently Apple posted a report that detailed the iPhone's dominance in the $600-1000 premium price tiers in Q3. For Q4 Apple led the premium segment again with over half of that market segment.

For the entire year, premium smartphones grew 18% despite the global smartphone market slowdown. According to Counterpoint Research’s recent Market Pulse December 2018 report, the global premium smartphone segment continues to grow faster than the overall smartphone market. The growth for the year was driven by Apple, Samsung and Chinese OEMs like Huawei, OPPO, vivo and One Plus. Brand diversity in the premium segment is increasing.

Within the premium segment, the $800+ ultra-premium segment has been growing the fastest. In 2017 it was merely 8% of the premium market (defined as $400+). However, since the Apple iPhone X was introduced, prices have jumped to a new level. In 2018, the new flagship of Apple (XS, XS Max), Samsung (note 9) and Google (Pixel 3 XL) were all launched above the $800 price. OEMs were able to increase the average price points (ASPs), taking advantage of the headroom created by Apple.

Also, according to Counterpoint’s consumer lens, consumers are now willing to spend more on their device, but at the same time holding on for a longer period. Thus, the overall market growth is slowing, but the premium segment is expanding.

Going forward, the trend of premium smartphones is likely to continue. Introduction of 5G phones, foldable displays and popularity of the so called, affordable premium segment in emerging markets will further drive the growth.

Market Summary:

• The global, premium smartphone segment grew faster (+18%) than the overall smartphone segment (-2%) in 2018. Growth was driven by flagship launches of Global players like Apple, Samsung and Google. Chinese players like Huawei, OPPO and vivo also followed this trend.
• Apple led the global premium smartphone segment capturing 51% share of the segment, followed by Samsung (22%) and Huawei (10%).
• The $800+ segment was a newly created category by Apple, and it grew the fastest. Apple clearly dominated with more than 80% share in the $800+ ultra-premium price band.
• The affordable premium segment, the $400-$600 price-band, was actually the largest volume segment in total premium sales and Apple remained the leader even in this segment.

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