In 2023, although the global smartphone market is in a downturn as a whole, the performance of domestic brands in the high-end market has sprung up, setting off a new "imperial hegemony". At the heart of this battle for supremacy revolves around flagship models that cost more than $600. In this high-end field, which was once monopolized by Apple and Samsung, domestic brands are rapidly expanding their influence through continuous innovation and strength.
Domestic high-end machines are blooming everywhere
Folding screen mobile phones have undoubtedly become a powerful tool for domestic brands to break through the high-end market. In 2023, brands such as Xiaomi, OPPO, vivo, and Honor have launched their own folding flagships to challenge Samsung's dominance in this market segment. These folding phones not only outperform the others in terms of hardware configuration, but also put a lot of effort into the design and user experience, so that consumers are impressed by domestic brands.
In addition to folding screens, domestic brands are also blooming everywhere on straight flagship models. Models such as the Xiaomi 13 series, vivo X90 Pro+, and OPPO Find N2 rival or even surpass Apple and Samsung flagships in the same period with their excellent performance and photo experience. The outstanding performance of these high-end models has allowed consumers to see the progress of domestic brands in innovation and technology, so they tend to try high-end products of domestic brands.
The multi-brand situation has also made the high-end market more active. In addition to the traditional Huawei, OPPO, vivo and other established legions, OnePlus, realme, iQOO and other emerging brands are also breaking through quickly in the high-end market, bringing more choices to consumers. This healthy competition will undoubtedly drive innovation in the entire industry, and consumers will ultimately benefit.
The localization of the supply chain is accelerating
What supports the breakthrough of domestic brands in the high-end market is the localization process of the upstream supply chain. Taking folding screen panels as an example, the production capacity and yield of domestic panel manufacturers will be greatly increased in 2023, so that domestic brands do not need to rely too much on Samsung Display, a monopoly supplier. In addition to the panel, core components such as hinges and metal middle frames have also accelerated the process of domestic substitution.
Chips are another important area for localization. Although flagship models are still dominated by chips from international manufacturers such as Qualcomm and Samsung, domestic chips such as Dimensity and Kirin are also rapidly increasing in the low-end market. With the continuous improvement of the performance of domestic chips, they are expected to further expand the application scenarios of high-end models.
The localization of the upstream supply chain will further reduce the production cost of domestic brands and improve their competitiveness in the high-end market. The completeness of the domestic supply chain will also enhance the voice of domestic brands and avoid being "stuck" by international giants.
The high-end market has promising potential
For domestic brands, the high-end market is undoubtedly a fertile land worth cultivating. Despite the impact of the epidemic and the economic downturn, the overall shipment volume of the global smartphone market will decline in 2023, but the sales of high-end models have bucked the trend, accounting for more than 60% of revenue. This shows that even in tough times, consumer demand for high-end flagship models is still strong.
From the perspective of regional markets, the thirst for high-end models in emerging markets is particularly strong. In China and India, for example, demand for high-end smartphones is rising rapidly as the middle class grows. The popularization of 5G networks and consumption upgrades will further generate high-end demand.
Brand premium is also another major goal pursued by domestic brands in the high-end market. By continuously improving product power and brand influence, domestic brands are expected to establish a brand premium in the minds of consumers like Apple, so as to obtain higher profit margins.
The future is promising
The prospects of domestic brands in the high-end smartphone market are promising. With the continuous enhancement of innovation strength, domestic brands are expected to further increase their share of the global market. Innovation is the key to winning the high-end market.
In addition to hardware innovation, software and ecological construction will also become the focus of domestic brands. For example, through artificial intelligence and large model technology, it brings a more intelligent interactive experience to mobile phones; Or create a unified ecosystem that seamlessly connects phones with other smart hardware to enhance the user experience.
While Apple and Samsung still dominate the high-end market, the rise of domestic brands has brought more choice to consumers. As long as domestic brands continue to innovate, they will definitely be able to get a share of this "imperial hegemony".