The global smartphone market is experiencing a rapid shift towards premiumization: is the sub-4,500 phone becoming a relic of the past?

The global smartphone market is experiencing a rapid shift towards premiumization: is the sub-4,500 phone becoming a relic of the past?In recent years, a significant transformation has been underway in the smartphone market, with a clear trend towards higher-end devices. Data from market research firm Counterpoint Research reveals a surge in consumer preference for premium smartphones, reshaping the global landscape

The global smartphone market is experiencing a rapid shift towards premiumization: is the sub-4,500 phone becoming a relic of the past?

In recent years, a significant transformation has been underway in the smartphone market, with a clear trend towards higher-end devices. Data from market research firm Counterpoint Research reveals a surge in consumer preference for premium smartphones, reshaping the global landscape. Their data indicates that approximately 25% of smartphones shipped globally in 2024 had a wholesale average selling price (ASP) of $600 or more (roughly 4,400). This means that one in four smartphones sold now costs over 4,400.

This premiumization trend stems from consumers' increasing demand for higher quality and more powerful features. The market share of high-end smartphones has significantly increased from 15% in 2020 to 25% in 2024, a remarkable growth. This demonstrates a growing willingness among consumers to pay for superior user experiences, moving beyond the basic functionalities of budget phones and seeking superior performance and richer features.

Even more noteworthy is the booming "ultra-premium" smartphone market. Counterpoint Research data shows that in 2024, the market share of "ultra-premium" smartphones with an ASP exceeding $1,000 (approximately 7,200) surpassed 40% for the first time. This clearly indicates that the high-end market is not only expanding but also reaching higher price points, with a growing number of consumers willing to pay for top-tier configurations and cutting-edge technology.

In the premium smartphone market, Apple remains the undisputed leader. In 2024, Apple held over 67% of the high-end device market share, demonstrating significant brand influence and product competitiveness. However, other manufacturers are actively vying for market share. Brands like Samsung, Huawei, Xiaomi, and Google are all showing competitiveness in the premium segment, with the rise of players like Google impacting Apple's market share, which has decreased from 72% a year prior.

The performance of Chinese manufacturers in the high-end market is noteworthy. Huawei, a leading Chinese smartphone manufacturer, exhibits strong competitiveness in the premium segment. Although Huawei's high-end market share has slightly decreased from 22% in 2020 to 18% currently (due to intervening circumstances), its overall performance remains commendable. This signifies that domestic Chinese brands are increasingly gaining a foothold in the premium market and have the capability to compete with international giants.

Counterpoint Research analysts indicate that the continued price increases of smartphones in emerging markets will further drive the premiumization trend. While the growth rate may slightly decelerate, the high-end smartphone market is expected to maintain continuous growth. Furthermore, the Chinese government's inclusion of smartphones in subsidy programs will further stimulate growth in the high-end smartphone market, injecting new vitality.

The appeal of premium smartphones to an increasing number of consumers is multifaceted. First, they typically boast more powerful processors, offering smoother operation and superior performance for a more satisfying user experience. Second, they often feature higher-resolution cameras and advanced imaging technology, capturing higher-quality photos and videos to meet the growing demand for superior image quality. Third, they often utilize superior displays, such as AMOLED or OLED screens, providing clearer, more refined visuals and enhancing the user's visual experience.

Simultaneously, premium smartphones are actively embracing emerging technologies, such as GenAI capabilities. The application of GenAI brings smarter and more convenient user experiences, including more accurate voice assistants and intelligent image recognition, further enhancing their appeal. These advanced features and technologies give premium smartphones a strong competitive edge, meeting consumer demand for high-quality, high-performance, and intelligent devices.

In conclusion, the premiumization trend in the smartphone market is increasingly evident and is profoundly impacting the entire industry. Consumers' pursuit of higher quality and more powerful features is driving continued growth in the high-end smartphone market. Apple and Huawei hold leading positions, but other manufacturers are actively competing for market share. In the future, with the continued development of emerging technologies and evolving consumer needs, the high-end smartphone market will exhibit a more diverse competitive landscape. For average consumers with a budget below 4,500, reconsidering their budget to obtain a better user experience might be necessary. The premium smartphone market not only represents technological advancement but also reflects consumers' pursuit of a higher quality of life. The continued development of this trend will further drive technological innovation in the smartphone industry and bring consumers more high-quality product choices. Smartphones priced below 4,500 may indeed become a thing of the past.