Commenting on the premium segment’s growth, Senior Research Analyst Karn Chauhan said, “The premium segment continues to grow as consumers opt for high-end features like better processors, cameras, displays, and GenAI features, for an overall better user experience. Additionally, longer software support and future-ready hardware have ensured the longevity of these smartphones, further justifying their higher prices. With current premium smartphone users likely to stay in the price-band and newer users entering, the segment will sustain growth.”

Top Smartphone OEMs’ Share in Premium (≥$600) Market, 2020 vs 2024

Commenting on the regional share, Research Analyst Harshit Rastogi said, “The US remains the largest contributor to the global premium smartphones segment, commanding a 25% share in 2024. This was driven by the higher share of Apple’s iPhones and Samsung’s Galaxy S and Galaxy Z series smartphones. However, China is swiftly closing the gap, reaching 24% of global share as local OEMs gain ground in the premium segment. Huawei, Xiaomi, vivo and HONOR all recorded double-digit percentage annual growth in the segment.”

Since 2020, the premium segment in India and Latin America have grown over 5x and 2.5x, respectively, due to shifting consumer preference for top brands. This was further facilitated by easier financing and trade-in offers. Apple and Samsung have been go-to brands and key beneficiaries of the premiumization trend.

OEMs are focusing on revenue over volumes as they continue to streamline their portfolios. Consequently, the number of active smartphones in the premium segment has increased, reaching almost 300 SKUs in 2024, while the overall SKU count of smartphones continues to decline. The premiumization trend is expected to carry on, although at a slightly slower pace, as emerging regions continue to move up the price bands. The premium segment is expected to grow further in China due to the incorporation of smartphones under the subsidy program.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.