In 2023, Apple remained the leader in the premium smartphone market, but sales declined compared to the previous year, according to a new Counterpoint Research report. The report indicates that there is growing competition from Samsung and the re-emergence of Huawei as a threat, affecting Apple’s sales.

The report classifies phones as premium if their wholesale value is more than $600, typically resulting in a retail price above $800. Premium phones accounted for almost a quarter (24%) of all phones sold in 2023, reaching an all-time record and indicating a significant increase in their market share.

Despite representing only 24% of total sales, premium phones are projected to generate 60% of the revenue in 2023. This shift is attributed to consumers’ willingness to spend more on high-quality devices that they can use for a longer period. The latest flagship phones have also become a status symbol for many consumers, especially in emerging markets.

Apple continues to dominate the premium market, but its global market share declined from 75% to 71% in 2023, with Samsung and Huawei gaining ground. Samsung’s gains were linked to the growing popularity of folding phones, a market segment where Apple has yet to compete.