A new study of the global premium smartphone market by Counterpoint Research found that the segment grew by 46% Y-o-Y in Q2, 2021, and iPhone 12 series accounted for a 57% share of the premium smartphone market (models priced $400* and above). Apple was followed by Samsung and Huawei.
In 2020, Apple launched its first iPhone series in four sizes, a powerful A14 processor, support for a 5G network, an advanced display, camera system, and much more. And those features are a massive hit with the consumers. Previously, Strategy Analytics reported that Apple’s iPhone sales in Europe grew in Q2, 2021 by 16% because of high upgrades. “The iPhone 12 range continues to resonate with loyal Apple fans who were overdue to replace their aging 4G models.” The new report also quotes the factor for the success of the iPhone 12 series.
Adoption of 5G and steady supply chain in the prevailing chip shortage led to the iPhone 12 series’ dominance of the global premium smartphone market
As per the new report, Apple ranked number one in North America, Latin America, Western Europe, Eastern Europe, China, APAC Ex China, and the Middle East and Africa. It was followed by Samsung in second place and OnePlus in third place. The factors responsible for Apple’s dominance of the global premium smartphone market are high upgrades to the iPhone 12 series and the company’s steady supply chain amidst the global chip crisis.
A large part of the premium market growth in Q2 2021 was driven by Apple, which reported a sales growth of 74% YoY in the premium segment on the strong momentum of the iPhone 12 series due to the iPhone users continuing to upgrade to 5G. Apple’s supply chain was also very resilient in managing component shortages and gained from the decline of Huawei in regions like China and Europe. Apple was the largest OEM in the premium segment across all regions.
Furthermore, the iPhone 12 Pro models saw the highest 182% Y-o-Y growth which reflects consumers’ preference for larger screens and bigger batteries. The report states:
Within the premium segment, while all the price bands saw growth, the highest growth (182% YoY) was seen in the ultra-premium band (>$800). This was mainly due to the strong momentum of the iPhone 12 Pro Max and iPhone 12 Pro. The Pro versions were launched later than the usual September date, causing demand to spill over to the subsequent months. Apple captured close to 75% of the ultra-premium segment, compared to 54% a year ago. This shift also indicates that more consumers now prefer high-end devices after realizing the importance of smartphones to them during the COVID-19 lockdowns. A section of consumers also had extra savings while working from home, which they invested in devices like smartphones.