Apple likely to corner 39% share of Rs 1 lakh-plus smartphone segment

Apple has been able to grab a larger share of Indian premium smartphone market segment, while rival Samsung has seen a relative fall in its share in the same segment

First the good news. India’s premium smartphone market (above Rs 30,000) has been on a roll this year and is estimated to grow by a staggering 60 per cent in calendar year (CY23) over the previous year.
 

Apple’s share in the Rs 1 lakh-plus phone segment is expected to hit 39 per cent by the end of CY23, up from 35 per cent in calendar year 2022 (CY22). 

Samsung, which is a key player in this segment with its array of foldable smartphones, is projected to see its share fall from 65 per cent to 59 per cent over the same period. The information is based on data from Counterpoint Research.
 

The bad news, though, is that overall smartphone sales are estimated to fall by 2 per cent because consumers are taking more time to upgrade their old phones.

Moreover, many are buying premium second-hand phones instead of new models. But with many iPhone users upgrading to the high-end iPhone Pro, which comes with a price tag of over Rs 1 lakh, Apple has been able to grab a larger share of this top-end smartphone segment, while rival Samsung has seen a relative fall in its share in the same segment.
 

In the Rs 50,000 to Rs 1 lakh price range, though, Samsung is expected to reach a market share of 13 per cent in CY23 — an increase of two percentage points over the previous year. This has been led by the success of its flip phones.
 

On the other hand, in the sub-Rs 1 lakh basic iPhone 14 and iPhone 15 segment, Apple has seen its market share go down by 4 percentage points, even though it continues to dominate the segment with a huge 74 per cent share in CY23.
 

In the entry-level premium segment, priced between Rs 30,000 and under Rs 50,000, Samsung has been able to increase its market share substantially to a projected 34 per cent by CY23, up from 30 per cent in CY22.

In this space, Apple’s share is limited to some of its older phones like the iPhone 13 which are on offer at discounted rates. Samsung’s competition in this segment comes from OnePlus.
 

Explaining the changes in the premium market, Neil Shah, founder of Counterpoint Research in India, says: “The mix for Samsung is changing from Rs 1 lakh-plus folding phones last year to flip phones (such as Samsung Galaxy Z Flip 5) this year which are at sub-Rs 1 lakh. Apple’s higher memory variant Pro is doing very well and is at over Rs 1 lakh. So, as the iPhone base matures, you are getting some momentum.”        
 

If the entire premium smartphone market is taken into consideration (above Rs 30,000) Shah says the iPhone would end up with a 40 per cent share of the market, with the rest controlled by all brands on Android. That is 2 percentage points lower than in CY22.
 

In Q3 of 2023, Apple accounted for 60 per cent of the premium market of smartphones above Rs 45,000, and was followed by Samsung at 27 per cent and OnePlus at 7 per cent.