Mid-Range Smartphone Market Collapses
The global smartphone market is fracturing into high-end and low-end segments, with the mid-range ($200-$600) segment's market share plummeting from 35% in 2021 to a projected 23% by 2027, according to Goldman Sachs. This sharp decline contrasts with its steady 35% share in 2021-22. Analysts attribute this to a lack of revolutionary technology upgrades and more conservative spending by the middle class amid macroeconomic challenges. Conversely, the premium segment (>$600) is booming, with its share projected to reach 32% by 2027. The entry-level segment ( <$200) shows remarkable resilience, maintaining a 41-45% market share, driven by 4G to 5G migrations and cost-conscious consumers. IDC analyst Navkendar Singh highlights the significant, yet underappreciated, growth of the used phone market. Overall market growth is sluggish, with Goldman Sachs projecting just 3%, 2%, and 1% growth in 2025-27, citing a lack of innovation and longer replacement cycles. India's smartphone shipments are projected to grow 3% in 2025, mirroring global growth, and capturing 13% of the global market share by 2025-27.
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