There’s a boom in premium phones: What’s driving it?

livemint.com:

₹59,000 last month, has benefited. Experts say a growing market in refurbished phones has also helped. While 5% of smartphone users had phones priced at $400 and above in 2021, this grew to 7% in June this year.

This could grow to 20% in four years, as per market research firm Counterpart. Smartphone users grew from 600 million in 2021 to 750 million now. Premium smartphone users have risen from 30 million in 2021 to 52 million now—a 70% increase.

Rising disposable income, along with better financing schemes, will make splurges more affordable for most buyers. While first-time buyers are expected to push up the number of smartphone users to 1 billion, upgrading and repeat customers will continue to push up the average selling price of smartphones. However, there is a long-term glass ceiling for brands—India is intrinsically a value-conscious market, and premium phones will always have a limit in their growth trajectory.

Samsung and OnePlus are bolstering their growth potential with foldable phones, while Google is pushing generative AI. Apple has grown exponentially, bringing in the latest iPhones in line with global launch timelines. This shift is causing more brands to refine their portfolios.