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The huge challenge of selling a high-end non-iPhone product: Apple takes 75% of the pie 7 comments

It’s getting harder and harder to get a slice of the top pie. Apple’s victory in the global market is due solely to its premium segment strategy. The plan works: few pay for a premium Android, and the gap gets bigger every year.

The latest Counterpoint data points to an even more favorable global picture for Apple. The market share in the premium segment increased from 71% last year to 75%. Despite the tremendous growth of manufacturers like Google, the differences in market share are insurmountable in the medium term.

75% share. The figure is barbaric. Out of every 10 high-end mobile phones sold in the world, 7.5 are iPhones. Samsung is the second leader with a 16% share. Their catch of 17% represents a 5% drop from last year. It’s not yet clear how the Galaxy S23 Ultra and S23+ will perform this year, but it seems hard to stop Apple’s growth.

chinese tuber. Huawei and Xiaomi are experiencing a significant decline compared to the last academic year, 2022. In the case of Huawei, we’re talking about a 44% drop from a 5% share to 3% in 2022. On the Xiaomi side, it drops by 40%. % assuming currently only 1% in the premium market compared to 2% in 2021.

Eye on Google and Honor: Google and Honor are making room for themselves. Growth continued to be around 1% of the global share, though 110% for Honor and 118% for Google. The mid-range Pixel (6a), along with the Pixel 7, sells significantly in Spain according to our sources, with significant international growth in sales of the 6 Pro and 7 Pro. According to Counterpoint, Honor’s growth was thanks to Magic. TV series in China.

Premium market will continue to grow. The reasons for the growth of senior and access to the middle class are multifactorial. First, consumers with high purchasing power were not affected by the pandemic. In fact, their numbers have increased. The over $1,000 mobile market grew 38% year over year. Meanwhile, middle-class and entry-level consumers with tighter economies contributed to the global 12% decline in the phone market.

Another important point here is how the market tends towards “premium”. Price increases are causing upper-mid-range phones to exceed the average bill of $600; this is a hurdle that consultants have included phones in the premium segment. Counterpoint’s data also shows that even in emerging economies, phone upgrades by consumers tend to jump to the top.

If you can’t beat them, join him. There are two strategies for fighting against Apple in the mid-range. The first is Xiaomi’s: launch premium terminals at a similar price to convey the message that you are no longer just a company that sells cheap mobile phones. The Xiaomi 13 Pro and its last ticket for 1,399 Euros are proof of that.

opposite plan. The other strategy is the opposite: limit the distribution of your high-end mobile phones to markets for which you have certain warranties. Companies like Vivo are only bringing the Pro versions to Spain, not the Pro+ versions. This is likely due to the difficulty of guaranteeing both operators and retailers to place a certain number of units.

Image | xataka

on Xataka | iPhone 14 Pro, analysis.

Source: Xataka



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