Apple captured 57% of premium smartphone market sales as the global premium smartphone market ($400 and above wholesale price) average selling price (ASP) grew 8% YoY to reach $780, a second-quarter record, in Q2 2022, according to Counterpoint Research’s Market Pulse Service.
The smartphone ASP growth was mainly driven by the 94% YoY sales growth in the $1,000 and above price segment. The segment alone contributed to over one-fourth of premium smartphone sales and over a fifth of global smartphone revenues in Q2 2022. The growth of the segment also drove the global smartphone ASP to its highest second quarter ever.
Commenting on the growth of the $1,000 and above price segment, Senior Analyst Varun Mishra said in a statement, “As 5G is becoming more prevalent, consumers are upgrading their devices. This is especially significant, as the large installed base of premium iPhone users upgrades to 5G. Apple’s sales grew 114% YoY, capturing over 78% of the $1,000 and above price segment. Consumers whose finances were not affected by the pandemic have been using the extra disposable income created due to restricted travel to buy more expensive devices, including smartphones. During the pandemic, users also realized the importance of smartphones and started seeing more value in upgrading their devices. Another interesting factor is that this trend in the ultra-premium market is ubiquitous across regions, despite inflationary pressures. This is because affluent consumers are not affected by the current economic headwinds. Hence, the low-to-mid-price segment has been hit hard by the recent macro headwinds while the high-price segment still looks solid, further boosting the ASPs. Also, the increasing number of financing schemes and a growing ecosystem of trade-ins and EMIs are also helping consumers to upgrade their devices without paying the total price upfront.”
The segment’s growth has also helped in arresting revenue declines. Despite the unit sales decline, global premium smartphone market revenues remained flat YoY. As lower price tiers got affected more by inflationary pressures, the premium market’s revenue contribution to the overall smartphone market increased to 60% in Q2 2022 from 58% in Q1 2022.
In terms of volumes, sales in the premium segment declined 8% YoY in Q2 2022 but performed better than the overall smartphone market, which declined 12%. This is the ninth consecutive quarter in which the premium market has outperformed overall smartphone market growth.
Apple continued to lead the premium segment with a 57% share as the 4G iOS installed base continued to upgrade. Sales and promotions in the US remained strong through the quarter. There was no evidence of any macroeconomic impact on demand. Apple also continued to successfully onboard new users as switcher growth hit a fresh record during the quarter, largely driven by robust growth in emerging economies.
MacDailyNews Take: Apple’s demographics are far more recession-proof than the iPhone wannabe peddlers.
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