There was a time when every smartphone was a “premium” model, costing an astronomical amount. There are now gadgets available at all price points, but when it comes to high-end, Apple is still unrivaled. New research from Counterpoint Research claims that foldable phones are the reason other device makers have begun to chip away at Apple’s lead.
Apple captured 75% of the premium phone market in 2022, according to Counterpoint’s calculations. A premium phone is defined as a smartphone that costs more than $600. That includes every single iPhone model from Apple, with the exception of the iPhone SE.
According to Counterpoint, Apple’s dominance of the premium market fell slightly to 71% in 2023. In 2023, there were minor improvements for Xiaomi, Huawei, and Samsung. In China, Huawei’s Mate 60 and foldable X3 were well-received, while Samsung’s S23 and Z Fold 5 were similarly effective.
In the meantime, the Mix Fold 3 was unveiled by Xiaomi to rave reviews. Due to their exorbitant price tags, foldables are still hard to come by in everyday life. An exorbitant $1,800 will get you the top-selling Galaxy Z Fold 5 from Samsung. Despite this, Counterpoint claims that some customers are opting for foldables instead of pricey iPhones.
Apple lost ground in the market share race because to foldable phones, even though they only account for 1% to 2% of all phones sold worldwide. This is happening at a time when the smartphone market as a whole is showing no signs of growth; with the widespread availability of smartphones and the length of time people spend with each model, the days of exponential expansion are over.
When consumers do upgrade, the original equipment manufacturers (OEMs) love the chance to offer more costly phones, which results in significantly higher revenues. In 2023, premium phones generated 60% of total revenues, although only comprising a quarter of all sales, according to Counterpoint.
The first foldable phone was produced five years ago by Samsung, and since then, hardware has greatly advanced. But Apple is usually last to enter. Despite being an inarguable improvement over previous cellphones, the original iPhone was still based on the Symbian, Palm OS, Windows Mobile, and BlackBerry platforms.
At this time, the only foldable phone available is the Android variety, but Apple isn’t going to sit on its hands forever. At some point, it will unveil a foldable and assert that it has resolved all issues related to the design. That has the potential to instantly turn around this trend.
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