Counterpoint Research: Affordable premium smartphones are here to stay

The worldwide smartphone market has evolved over the years. The rise of ultra-premium handsets with the launch of iPhone X has changed the whole landscape. People are now turning towards so-called ‘affordable premium’ devices, at whose price the flagships were sold earlier. The latest report by Counterpoint Research on South Korean smartphone market explains this new trend clearly.

For years, Samsung’s Galaxy S series and Galaxy Note series have been the top-selling smartphone models in South Korea. But it has now changed and the effect can be clearly seen in the Q1 2020 Counterpoint Research smartphone sales tracker for South Korea.

The top-selling Samsung handset in this period was Galaxy A90 5G whose ASP (Average Selling Price) was $453 compared to  $806 Galaxy Note 9 in Q1 2019. That does not mean ultra-premium devices did not make the top 5.

The second most-selling Samsung phone was Galaxy Note 10 5G for $941 and the fifth position was held by Galaxy Note 10 Plus 5G. When we look at last years sales around the same time, the first three were ultra-premium handsets followed by an entry-level model and a yesteryear flagship.

This trend can be noticed since 2018 as Galaxy S and Note series have been giving up their shares to entry-level and mid-range devices. Also, although the average selling price (ASP) of smartphones sold in South Korea increased steadily till last year, it has declined in Q1 2020 for the first time indicating the changes to come.

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The price of high-end smartphones has rocketed high in the past couple of years. But not all OEMs are winners and hence LG revamped its mobile strategy this year by ditching premium G and V series with new Velvet series priced around $730.

Also, Apple who initiated the craze for ultra-premium smartphones introduced iPhone SE 2020 retailing at $450, its cheapest smartphone in years. The trend of affordable premium handsets is expected to continue in not only South Korea but worldwide, thanks to the ongoing pandemic.

(Source)

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