In the first half of the year, the iPhone 14 emerged as the most-shipped smartphone, signaling a shift in consumer preferences towards high-end devices and away from mid-range options. Research firm Omdia's "Smartphone Model Market Tracker - 2Q23" report revealed that the iPhone 14 Pro Max, shipping 26.5 million units, and the iPhone 14 Pro, with 21 million units, were the top two models by shipments across all manufacturers.

Figure 1. As consumers prefer high-end handsets over inexpensive phones, the iPhone 14 Pro Max dominates global smartphone shipments

Figure 1 shows Apple dominated the list, with the iPhone 14 ranking third at 16.5 million units and the iPhone 13 following closely at 15.5 million units. This year's trend marks a departure from the previous year when the iPhone 13 claimed the best-selling spot, showing that consumers are now favouring the high-end segment rather than the entry-level flagship devices.

The shift reflects a growing inclination among consumers to opt for more premium options in the smartphone market. [1] Although recent years have seen incremental updates in phone technology, primarily focusing on camera improvements and more powerful processors, this has led to a certain level of consumer apathy towards smartphone purchases. Skyrocketing prices exceeding $1,000 for top-end phones, as seen with brands like Apple, Samsung, and Xiaomi, have also deterred many from investing in flagship devices. Despite this, the iPhone 14 Pro Max's emergence as the most-shipped smartphone illustrates a changing consumer landscape favouring more premium offerings.

Consumers are holding onto their smartphones for longer periods, typically replacing them only when they break or reach a certain point in their lives. However, there's a growing willingness among consumers to pay a premium for high-end devices that offer the best features available in the market. This trend is reflected in the sales data for the first half of the year. The Samsung Galaxy A14 ranked fifth in terms of best-selling phones, shipping 12.4 million units, while the top model in Samsung's range, the Galaxy S23 Ultra, was the sixth-best performer with 9.6 million units shipped. Notably, Chinese smartphone manufacturers did not make it into the top 10 list, as shipments of Chinese smartphones experienced a significant decline due to a slump in the mid- to low-end market.

These sales figures hold importance as they provide insights into consumer sentiments, particularly as Apple prepares to launch its new iPhone 15 in the fall. Omdia predicts that Apple's overall iPhone shipments for the year will likely remain flat or slightly lower, but the demand for its Pro and Pro Max models is expected to continue growing due to the popularity of premium devices. [2] In a broader context, global smartphone shipments are projected to decline by 6% year-on-year to 1.15 billion devices, marking the worst performance in a decade, according to earlier data from Omdia. As a result of these trends, Apple's stock experienced a minor increase in early trading, reflecting the ongoing market dynamics. So far this year, Apple's stock has risen by around 37.5%.

References:

1. https://www.cnbc.com/2023/08/28/apple-iphone-14-pro-max-tops-smartphone-shipments-globally-omdia-says.html
2. https://www.businesskhabar.com/money/finance/iphone-14-pro-max-tops-global-smartphone-shipments-as-people-shun-budget-phones-for-top-end-devices/

Cite this article:

Janani R (2023),As consumers prefer high-end handsets over inexpensive phones, the iPhone 14 Pro Max dominates global smartphone shipments,Anatechmaz, pp.570