Apple, Samsung, OnePlus, and Vivo to drive the ultra-premium market

India’s ultra-premium smartphone market is witnessing intensified competition, among the mobile phone brands including Apple, Samsung and OnePlus vying with new entrants like Vivo for a greater share of consumer wallets in the festive season. The significant growth in these segments can be attributed to increased consumer spending on luxury/costly product segments, re-allocating spends from holidays, shopping, travel, dine-out etc, as per IDC. With this we can expect this momentum to only grow further in the upcoming festive season, driven by upgraders within premium and from the $500-$700 segment.
 

As per the Counterpoint Research, Apple, Samsung, OnePlus, and Vivo will drive the ultra-premium market, which is expected to witness more than 60% on-year growth in 2021. Competition will be very high in this segment, with Apple likely to corner the lion's share of around 40% in Q3. We have seen high shipments of iPhone 11 and 12 in August, and it will continue coupled with the iPhone 13 series. “Apple is filling channels.”

The report further says, due to supply constraints impacting the entire mobile phone ecosystem, premium players have tried to push in adequate stocks, including of older models, ahead of the festive season, market trackers said. They are also offering upfront discounts and cashbacks besides financing schemes and trade-in programs to attract buyers.

The premium segment - over Rs 30,000 - contributes 7% by volume, but 23% by value in the overall smartphone space. Samsung’s market share in the segment is also expected to grow due to the launch of its foldable Galaxy Z series, which includes Z Flip 3 and Z Fold 3. In two to four years, the premium segment will continue to grow as rising incomes will help consumers be willing to pay a premium for meaningful innovation and upgrade their phones. Going forward, the smartphone firms set to ship 52 million devices in Q3, backed by a surge in consumers upgrading their smartphones after a year plus of surviving the pandemic, the quarterly shipment numbers are set to cross the 47-49-million-unit mark in pre-Covid 2019.