Upper Mid-Range and Premium Smartphone Models Captured Significant Revenue Globally in Q2’22

Is it more economical to buy a premium phone and keep it for longer than to buy a budget phone and replace it regularly?

Budget and midrange smartphones make up the majority of smartphone sales since the majority of what a typical buyer wants can be easily purchased in that price range. To attain the affordable premium or “flagship killer” experience that the tech sector appears to be obsessed with lately, shoppers worldwide are becoming increasingly willing to spend more money for the reasons listed above and other factors. phones new

Ultra high-end smartphones, priced at US$600 wholesale and above, were responsible for half of all smartphone revenue in the second quarter of 2022, somewhat less than in the previous two quarters.  phones new

Besides the mid-range price tier of US$100-190 (wholesale), the US$191-299 and US$300-399 price tiers represent significant sources of revenue, together 22% of all smartphone revenue in Q2. Indeed, altogether eight models belonged to either of these price tiers on top-20 list of most revenue-generating smartphone models, according to recent research from Strategy Analytics’ Smartphone Model Tracker (SMT). These two price tiers also have fewer competing models than the overcrowded US$100-190 price tier. The top models from these price tiers are shown in the exhibit below.

Global Smartphone Revenue Q2 2022, Top-10 Upper Mid-Range and Premium Models

The Apple iPhone SE 5G, Samsung Galaxy A73 5G, Vivo V23 5G, and Xiaomi 12 5G belong to the premium price tier, US$300-399 wholesale, whereas the other six devices are from the US$191-299 price tier. Globally, looking at all price tiers in terms of revenue, these devices ranked between no.6 and no.22, taking from 0.5% to 1.8% revenue share, an impressive achievement, since most other models in the top-20 are from higher-end price tiers.

This goes to show that there are significant revenue opportunities beyond flagship and ultra-high-end devices available to multiple vendors, not just Apple and Samsung, that other vendors should prioritize.

Is it more economical to buy a premium phone and keep it for longer than to buy a budget phone and replace it regularly? phones new

These are the most common reasons why buyers today might be more willing to buy premium phones as opposed to budget or mid-range phones:

1. Long-Term Cost Savings with Premium Phones

Premium phones are expensive and not suitable for everyone – it’s true. But there are ways they can prove to be more economical than cheaper phones. The three main reasons why people upgrade their phone are that the battery has degraded, the software support has ended, or they simply want new features.

If you buy a budget phone every two to three years, you get average performance, cameras, and build quality every time. But if you buy a premium phone, you can enjoy its premium hardware and software for longer, assuming that you’re okay with the three conditions we mentioned above.

2. Mobile Gaming Is Expected to Grow Rapidly

According to experts, the mobile gaming market will increase rapidly in the upcoming years. In the end, there are many more cellphones than gaming consoles and personal computers. With the help of microtransactions, mobile game creators can reach a wider audience and increase revenue.

Also, since phones are becoming more powerful and 5G is becoming more accessible each year, graphics and multiplayer experience will improve too. All this will translate to developers making better mobile games, and to play those games (which will probably be free to download), buyers will be more likely to buy premium phones with better performance.

3. There’s More Choice

Chinese manufacturers have a solid reputation for producing some of the best low-cost phones available, and their phones are affordable. And although that still serves as their mainstay, it appears that more Chinese businesses are beginning to give priority to flagships. new phones

With fantastic specs, excellent build quality, and a very deliberate “cool factor,” Xiaomi, Vivo, and Oppo now provide competing flagships that are positioned right next to Samsung’s rivals.

Chinese companies are not as well-known in the US (with the exception of OnePlus), but they dominate the Asian market.

4. Buyers Are Better and More Informed phones new

In contrast to the previous ten years, buyers today are more vocal, educated, and informed about their wants. They can be pickier because there are more options available than ever before.

Furthermore, thanks to the proliferation of new content producers and tech journals, consumers can now simply watch videos or read articles to compare two or more phones of their choice and improve their purchasing decision.

 

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