Apple has made spending R20,000 on a phone the new normal
Counterpoint Research has released its latest Market Pulse report, detailing the most popular types of phones around the world.
The report found that the global premium smartphone segment (phones that cost $400 or more) has continued to grow faster than the overall smartphone market on the back of strong sales from Apple, Samsung and Huawei.
Within this premium segment, the $800+ (R11,000) ultra-premium segment has been growing the fastest, the report found.
“In 2017 it was merely 8% of the premium market (defined as $400+),” Counterpoint said. “However, since the Apple iPhone X was introduced, prices have jumped to a new level.
“In 2018, the new flagship of Apple (XS, XS Max), Samsung (Note 9) and Google (Pixel 3 XL) were all launched above the $800 price.”
Of note is that these dollar comparisons do not necessarily reflect actual South African prices, with the iPhone X launching at R20,499 in November 2017.
This data dovetails with Counterpoint’s recent consumer research which found that consumers are now willing to spend more on their device, but at the same time holding on for a longer period.
This has led to the overall market growth slowing, but an expansion in the premium segment, it said.
“Going forward, the trend of premium smartphones is likely to continue,” Counterpoint said.
“Introduction of 5G phones, foldable displays and popularity of the so-called, affordable premium segment in emerging markets will further drive the growth.”
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