Premium smartphones are the high-end, top-of-the-line models offered by smartphone manufacturers. They typically have the best features and specifications available, including the fastest processors, the most advanced cameras, and the highest-quality displays. Premium smartphones are also typically more expensive than other smartphones.
According to the latest research from Strategy Analytics, premium smartphones will capture a record 80 percent market share of all smartphone revenues generated in Western Europe in 2021.
Global smartphone wholesale revenue will drop -10% YoY in 2020 due to the hit of COVID-19. But it will rebound quickly from 2021 onward. Strategy Analytics forecasts global smartphone wholesale revenue will increase +32% in the next five years, reaching a record high in 2025. This is a combined result of growing smartphone volume and smartphone wholesale ASP driven by industry consolidation, replacement sales in higher-tier segments, hardware innovations (flexible displays, etc.), as well as migration towards 5G. Strategy Analytics expects the premium-tier segment to maintain the largest band by value, while the mid-tier will remain the largest band by volume until 2025.
Soaring 5G adoption and a new wave of affordable-premium smartphones, such as the Apple iPhone SE, will drive the premium smartphone category to an all-time high next year.
Boris Metodiev, Associate Director, at Strategy Analytics, said, “We estimate premium smartphone models accounted for 73 percent of all smartphone wholesale revenues generated in Western Europe during 2019, rising to a forecast 77 percent in 2020, and a record 80 percent in 2021. Premium models completely dominate the smartphone revenue landscape across Western Europe.”
Linda Sui, Director at Strategy Analytics, added, “The premium smartphone market in Western Europe today is being lifted by three major trends. First, there is soaring demand for more affordable 5G smartphones, such as the Samsung Galaxy A90. Second, there is a growing supply of affordable-premium 4G models, such as the Apple iPhone SE (2020). Third, a flood of hungry Chinese brands, such as Vivo and Xiaomi, who compete strongly on price, are piling in to grab a slice of the lucrative European premium smartphone pie.” premium smartphones