Expensive smartphones are still in high demand, despite the general decline in demand for smartphones.
Global smartphone sales fell nine percent in the last quarter compared with the same period last year, and brands such as Xiaomi, Vivo and Oppo saw demand decline.
Despite the decline, smartphones costing more than $1,000 grew in the first half of the year, according to Counterpoint Research. Smartphones in this category include Apple’s lineup and Samsung’s flagship and foldable models. While the two products accounted for 10 per cent of the market, they accounted for 70 per cent of sales.
There are several reasons for the decline in smartphone demand. According to the WSJ, inflation remains a major reason for the decline, as consumers rein in their excesses in the fight against rising commodity prices. Other factors include a pandemic blockade in parts of China that continued into the second quarter, supply chain problems and store closure.
The decline in smartphone demand may not end anytime soon. Smartphone manufacturers face numerous challenges that have led to higher costs for smartphones.
These challenges include inflation, semiconductor shortages, and the inability to operate at full capacity.