Published: Sat, September 22, 2018
IT | By Lester Massey

Apple: Top selling premium phone in 5 regions out of 7

Apple: Top selling premium phone in 5 regions out of 7

According to a new analytical report this morning, the global premium smartphone segment grew faster than the overall smartphone market.

"In India, it (OnePlus) surpassed Apple and Samsung to become the number one premium smartphone OEM during the quarter with a strong 40 per cent market share".

Meanwhile, Cupertino-based Apple led the global premium smartphone segment and captured 43 per cent share of the segment, followed by Samsung (with 24 per cent) and OPPO (10 per cent). A large credit goes to the increasing smartphone shipments of Chinese OEMs like OPPO, Huawei, OnePlus and Xiaomi. These top 6 companies combined account for over 90% of sales in the premium segment, suggesting that brand recognition and trust is even more vital in the premium segment. In India, smartphones costing US$400 or higher are classified as premium models. This segment typically has the most generous profit margins, and contribute greatly to profitability as a result.

Other stats released by Counterpoint show Apple's dominance in the premium market. Chinese OEMs such as OPPO, Xiaomi, Huawei, Oneplus and Vivo helped the global handset industry achieve an impressive 4% growth rate in the second quarter of 2018.

Out of the 40 OEMs which compete in the premium smartphone segment worldwide, the top five brands account for nearly 88 percent of sales.

OnePlus, the Chinese smartphone manufacturer has reached the top five premium Android OEMs (Original Equipment Manufacturers) globally in the Q2 of 2018.

The $600-800 segment presents an entirely different story.

Apple owned 88% of the over US$800 price segment (see the Counterpoint Chart below). This segment was nearly entirely dominated by industry incumbents Apple and Samsung with an 85% contributing share to smartphone shipments.

Samsung has been witnessing declining second-quarter profits since the last three years, and the low shipment volumes of its flagship Galaxy S9 series weren't expected to turn around the situation this time.

Like other OEMs, Apple refreshes its smartphones once a year but here's the major difference; it still manages to take away the lion's share of the industry profit. Apple's 44% slice of the revenue in that segment of the industry, compared to the 41% belonging to Samsung.

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