According to the Counterpoint report, the premium smartphone segment (more than $400) declined 13% YoY globally during the Q1 2020. However, the premium smartphone segment accounts for 22% of all smartphone sales worldwide in Q1 2020 and it contributed around 57% of total global smartphone revenue during the quarter.
As expected, Apple topped the premium segment with a 57% market share, followed by Samsung and Huawei. While most of the brands declined, OPPO grew 67% YoY, thanks to Reno3 and Reno3 Pro 5G series. Xiaomi for the first time entered the top 5 places in the premium smartphone segment, the company grew 10%, thanks to Mi 10 5G and Mi Note 10 series.
Apple, Samsung, and Huawei together captured 88% of the segment during the quarter. Except for the Chinese smartphone market, Apple and Samsung remained in the top 2 spots in all the regions. Huawei was the market leader in the premium segment in China. Similarly, OnePlus was also there in the top 5 players in the premium segment in all the regions except LATAM and China.
To be specific, top four out of the five highest selling models in the premium segment were from Apple in Q1 2020. Apple’s iPhone 11 continued to do well and was the highest-selling model in the premium segment for 2020 Q1.
Counterpoint report says:
“The overall premium segment declined but within the price bands that make up the premium segment: the 600 to 799 USD grew 47% YoY capturing over 42% of the premium price band sell-through. This was driven by the iPhone 11 series, which captured three-quarters of this price tier. The price segment has been growing steadily since 2Q 2019, first driven by the popularity of iPhone XR and now iPhone 11. This is now the strongest price band for Apple. Apple has tested its price elasticity and realized that marginally aggressive pricing can potentially generate a much higher “customer lifetime value (CLV)” over 24-30 months.”