Everyone wants cheap smartphones, but then they buy the most expensive ones

MobileEvery year we complain about smartphone makers increasing prices, a phenomenon that this year has affected everyone from Samsung with its foldable Galaxy Z Fold 4 and Z Flip 4 to the new iPhone 14, but then our picks do they reflect our disappointment? Not really, according to the latest market analysis from Strategy Analytics, but maybe that could change. The famous research institute has indeed produced a report in which it compares the worldwide revenues of the 500 best-selling smartphones, drawing interesting conclusions. According to the analysis, ultra-high-end smartphones, with a wholesale price of $600 or more, were responsible for half of all smartphone revenue in the second quarter of 2022, down from the previous two quarters, but always indicative of the market. One could object that by costing more, these smartphones generate more revenue, but the figures are indicative of a market success, even digital, which is reflected in the choices of manufacturers to favor the top of the range. However, the Strategy Analytics report opens the door to other avenues, indicating how the trend could change and that there are indeed market niches open to enterprising manufacturers.

In addition to the average price range of $100-190, the price ranges of $191-299 and $300-399 are significant revenue sources, which together account for 22% of all smartphone revenue in the second quarter. . (we always talk about wholesale prices, not retail). If you go to the top 20 most profitable phone models, you will notice that no less than eight belong to these price ranges. Apple iPhone SE 5G, Samsung Galaxy A73 5G, Vivo V23 5G and Xiaomi 12 5G belong to the price range of $300-$399, while the other six devices are in the price range of $191-$299. Revenue shares are shown below.

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These devices rank between sixth and twenty-second in global revenue, corresponding to figures between 0.5% and 1.8% of revenue share. This result is impressive, since most of the other models in the top 20 most profitable smartphones belong to higher price ranges. What can we deduce from these figures? That the most expensive smartphones are the most sold and therefore the most profitable for manufacturers, but that users (and therefore the market) are open to alternatives. This means that for manufacturers, and not just Apple and Samsung, there are exciting revenue opportunities that need to be prioritized.