Monday, Oct 25, 2021
Counterpoint Research Institute released its report on the advanced smartphone market in the second quarter of 2021 on Tuesday, September 14, 2021. According to the report, the growth of the advanced smartphone market in the last quarter was 46%, which has exceeded the growth of the total smartphone market in the second quarter (26%). Apple, meanwhile, continues to lead the market, accounting for more than half of all high-end smartphone offerings in recent seasons. It should be noted that, according to the Counterpoint classification, smartphones priced at $ 400 and above are in the category of advanced smartphones.
What draws attention in the recent Counterpoint report is that the share of advanced smartphones in the total market Global, from 21% in the second quarter of 2020 to 24% in the second quarter of 2021. This indicates the consumer tendency to buy high-end devices. With 57% of the market share, Apple topped the list of advanced smartphone sales in the second quarter, followed by Samsung with 17%. Huawei, Xiaomi and Oppo brands are also ranked third to fifth, far behind Apple and Samsung.
As mentioned, most of the advanced smartphone market is now in the hands of Apple. According to Counterpoint, as a result of iPhone users continuing their efforts to upgrade to 5G handsets, the 12 Series iPhones have seen strong sales, leading to a 74% increase in sales of Apple's advanced smartphones. Apple's supply chain has performed well in managing global parts shortages, and the US company has also benefited from Huawei's decline in areas such as China and Europe. Not to mention, according to a recent Counterpoint report, in terms of advanced smartphones, Apple not only in the global market but also in individual markets around the world (including North America, Latin America, Europe, China, the Middle East and Africa, etc.) Has gained the first rank.
It was 13 percent, but Samsung's market share fell from 22 percent (in the second quarter of 2020) to 17 percent (in the recent quarter). Counterpoint attributes the decline to disruptions to Samsung's manufacturing unit in Vietnam following the country's new wave of COVID-19. However, Counterpoint predicts that the release of the new Galaxy Z Fold3 and Z Flip3 devices at lower prices (compared to previous models) could improve Samsung's share of the advanced smartphone market in the second half of this year.
One of the interesting points that should not be overlooked is the success of the OnePlus brand. With strong sales of the OnePlus 9 series, the Chinese brand was able to become the third best-selling device in the North American region. Among the reasons for the recent success of OnePlus are LG's exit from the smartphone industry, as well as Samsung's problems in supplying the parts it needs.
As mentioned earlier, Counterpoint refers to advanced smartphones that are priced at $ 400 or more. But Counterpoint itself divides high-end smartphones into three categories: affordable high-end smartphones (priced from $ 400 to $ 599), advanced smartphones (priced from $ 600 to $ 799), and finally high-end smartphones (priced at $ 800).
According to Counterpoint, although sales of advanced smartphones in all three categories have been growing, but the highest growth rate in The high-end handset category is associated with an annual growth of 182%. The reason for this phenomenon can be attributed to the strong acceleration in sales of iPhone 12 Pro Max and iPhone 12 Pro. It should be noted that last year, these Peruvian versions were released after the usual release of the iPhone in September, and this led to the demand for these products in the following months. According to Counterpoint, by the end of the second quarter of 2021, Apple's share of the global high-end handset market had grown to 75%, a significant increase from the company 's 54% share in the same period last year. This growth shows that, after realizing the importance of smartphones as an essential tool during the corona virus outbreak, consumers prefer to have high-end devices. Also, due to the home era and the elimination of some expenses, a number of consumers decided to invest their extra savings by buying devices such as smartphones. The role of 5G in the boom of the advanced smartphone market
Fifth generation communication technology is becoming one of the standards offered in advanced handsets. During the second quarter of this year, 84% of all advanced smartphones were equipped with 5G technology (compared to 35% in the second quarter of 2020). In the high-end handset category, priced at $ 600 and up, 95% of the devices were 5G. According to Counterpoint experts, the release of the Series 12 iPhones in the fourth quarter of 2020 has played an important role in the growth of sales of fifth-generation advanced devices.
Counterpoint Research Institute envisions a bright future for this market and predicts continued growth for it. Sales of the iPhone 12 Series have been very stable in markets such as the United States (even before the launch of the new iPhone series in September 2021). In addition, the launch of Samsung's new line of clamshell phones and Apple's new line of iPhones could help the market grow even more. The iPhone replacement cycle is approaching three years, and users will likely key in upgrading their smartphones to 5G devices in 2021 and beyond.
Along with Apple and Samsung, brands such as Xiaomi, Oppo, Vivo and OnePlus continue to increase their share of the global high-end smartphone market. Not bad to know that Honor has also joined the ranks of advanced smartphone manufacturers with the launch of the Magic series in China. We should not forget that users of Huawei flagship phones in China are a great opportunity for other brands. As the device replacement cycle of this group of users approaches, other brands are expected to take advantage of this opportunity to increase their share of the advanced smartphone market in China.