As the average selling price (ASP) for smartphones has increased over the years, so has the revenue booked by Original Equipment Manufacturers (OEMs) worldwide. Not surprisingly, Apple, known for consistently launching the most expensive iPhone models, has maintained its stronghold on the lion’s share of the global smartphone market revenues each year.
According to Counterpoint Research’s latest report, the average selling price of smartphones globally reached $350 for the first time in 2023, with 2% YoY growth. Despite this positive ASP trend, the overall global smartphone revenues dipped 2% YoY, reaching just under $410 billion by the end of 2023. This decline was attributed to a 4% YoY drop in shipments, totalling 1.17 billion units over the past year.
Absurd Rise of High-End Smartphones
Interestingly, Apple made a historic milestone by emerging as the undisputed market leader in terms of both worldwide smartphone shipments and revenues in 2023. The Cupertino giant secured a 20.1% share of the global smartphone market in terms of shipments and an impressive 50% share of global smartphone revenues in 2023.
It is important to note that Apple’s increasing market share in revenues aligns seamlessly with the prevailing trend of “premiumization.” An astonishing 25% of smartphones shipped worldwide in 2023 had price tags above $600. The premium smartphone category saw an 8% YoY growth, showcasing the increasing appetite among consumers for top-tier devices. In stark contrast, the non-premium segment faced double-digit declines, underscoring a clear shift in consumer preferences towards more advanced and feature-rich options.
The surge in the global premium smartphone segment in 2023 can be attributed to several factors propelling its growth, including the rising popularity of foldable designs, the integration of cutting-edge features like GenAI, and the undeniable influence wielded by Apple in shaping consumer preferences within the premium segment. Apple’s commitment to innovation and its ability to set industry standards have evidently played a pivotal role in steering the premiumization trend.
Other Highlights: Revenue Share by OEMs
- The ASP of Apple iPhones surged an impressive 17.7%, from $756 in 2018 to a record high of $890 in 2023, showcasing a robust presence in the premium and ultra-premium smartphone segments on a global scale.
- Between 2018 and 2023, Apple has witnessed a substantial 31.6% growth in its global smartphone revenue share, increasing from 38% to 50%.
- Apple accounted for 7 of the top 10 smartphones shipped worldwide in 2023. The other 3 were Samsung devices, according to Canalys.
- Samsung’s revenue share in the global smartphone market revenue share declined from 18% in 2018 to 16% in 2023. This was mainly due to the fierce competition from Apple in the premium market, rivalry with Xiaomi and vivo in the mid-tier segment, particularly in India, and challenges from Transsion Group in MEA and South East Asia (SEA) in the lower-end segment.
- The average selling price of Samsung smartphones increased by $36, from $252 in 2018 to $288 in 2023.
- The ASP of Xiaomi smartphones rose from $150 in 2018 to $160 in 2023, leading to a corresponding increase in global revenue share from 4% to 6% over the same period.
- The average selling price of Oppo smartphones decreased by $5, from $261 in 2018 to $256 in 2023. This change contributed to a decrease in Oppo’s revenue share in the global smartphone market, falling from 8% to 7% during the same period.
- Vivo suffered the most among the top five players, with a notable $43 decline in its average selling price for smartphones worldwide over the last five years. The ASP dropped from $247 in 2018 to $204 in 2023. As a result, Vivo’s share of global smartphone revenues decreased to 4% in 2023, down from 6% in 2018.
The world is witnessing a remarkable transformation in the habits and buying behaviour of smartphone users worldwide. This is evident in the rise of the average selling prices (ASPs) of smartphones and the heightened demand for high-end devices such as iPhones. This shift is partly attributed to the availability of improved financing options offered by e-commerce companies. Consequently, consumers are willing to invest more in premium smartphones, which are beyond just traditional communication. It would be interesting to see how Samsung and other Andriod OEMs leverage these changing dynamics to capitalize on the market, much like Apple has adeptly done.
With Apple capturing 50% of global smartphone revenue in 2023, is the shift towards premiumization squeezing out Android manufacturers? Let us know in the comment section below!
