The latest data from Counterpoint Research shows that the high-end trend of the smartphone market is rising, and more people are buying expensive mobile phones than before. About 25% of smartphones shipped globally in 2024 will have a wholesale average selling price (ASP) of $600 or more.

The market share of high-end smartphones has jumped from 15% in 2020 to 25% in 2024, as the premiumization trend has prompted an influx of buyers who want to purchase powerful devices.

In 2024, Apple will remain the leader in this segment, accounting for more than 67% of the high-end device market share. The Cupertino giant is followed by Samsung, Huawei, Xiaomi and Google, with the latter pulling Apple's market share down from 72% a year ago.

In the high-end price segment, the market share of "ultra-premium" smartphones (ASP ≥ $1,000) grew by more than 40% for the first time as more people want to buy high-end products.

When it comes to ultra-high-end devices, Apple undoubtedly retains its title as the average selling price of iPhones exceeds $900 for the first time. The report pointed out that device manufacturers have begun to prioritize revenue over sales, and the 8% year-on-year growth in the high-end price market even exceeded the 5% overall growth in the smartphone market.

While the United States may not have the fastest internet in the world, it may have the highest share of high-end smartphones. The report stated that the United States is the largest contributor to the high-end market in 2024, accounting for 25% share, followed by China with 24%.

Meanwhile, India, one of the world's largest smartphone markets by sales, has seen its premium market share grow five-fold since 2020 as consumers favor top brands. While some customers may not be able to pay for a high-priced phone in one lump sum, easier financing and trade-in offers make it easier for them.

As mobile phone prices continue to rise in emerging regions, the premiumization trend is expected to continue, but at a slightly slower pace. The high-end market is expected to grow further as China includes smartphones in its subsidy program.

There may be several reasons why high-end smartphones attract more consumers despite their high price tags. Those who want a better user experience will opt for high-end features such as better processors, cameras, displays, and GenAI capabilities.

On top of that, device manufacturers justify their price tags by ensuring the product's longevity by providing years of software support and future-ready hardware. Samsung and Google have begun offering software support for the Pixel line and flagship Galaxy devices for up to seven years, surpassing even the five years Apple offers its iPhones.

In Apple's case, the stickiness of its ecosystem reportedly played a significant role in attracting users to buy cheap phones. Apple CEO Tim Cook also said during the company's first quarter 2025 earnings conference call that iPhone 16 models sell better in markets where Apple Intelligence is launched.