Half turn: Premium smartphone is not quite what you think it is!

Half turn: Premium smartphone is not quite what you think it is!

Premium, we have never heard so much about this expression as in recent years. But after all, what makes a device Premium? Market value, segment or technical specifications? Continue reading this article and find out all the details about this luxury segment in Brazil.

A few years ago, the mobile device market in Brazil was divided into three basic segments: entry, intermediate and top of the line. Between 2013 and 2014 we had the "Moto G effect", where each manufacturer had to review their market strategy in order to reach specific user niches.

Since then, it is common to hear about Premium intermediary that great device that costs up to 1,500 reais. Or also the flagship – one that is the target of the brand, but not its luxury item. However, the market continued to value smartphones within these three main categories.

For those who do not know, market analysis by economics analysts takes the price of the product as the determining factor to classify it within a segment. This analysis is for smartphone makers to define their sales strategies. However, for the manufacturer, a premium product may be the one that is the most expensive within its portfolio, but not necessarily a luxury device for the market.

ABC of smartphone segments

  • Input: is the most basic model in hardware and the lowest price. Moto C Plus an example.
  • Intermediate: model with improved specifications compared to the manufacturer's input model.
  • Advanced Intermediate: This model can be an alternative to the top of the line brand, can be a version with similar aspects and with minimal price difference. For many brands, however, the advanced middleman may be the flagship of their portfolio, even though it is not a top of the line for the market. Zenfone 4 is an example.
  • Top of the line: product that offers the best configurations and a higher price. It is an alternative to the advanced intermediate, but does not compete with the common intermediate. The Galaxy S8 is an example.
  • Flagship: The product in which the company invests all of its listings, including marketing. Understand that flagship is not exactly a market position, but an adjective used to identify the model that best represents a manufacturer's strategy. The flagship can be any model of the company. OnePlus 5T and Google Pixel 2 are examples.
  • Premium: premium rene is the best of all lines of the company, and brings unique features that are targeted at a specific user niche. Its value is the most expensive within a smartphone line, and its position is above the top of the line. The Xperia XZ Premium and the LG V30 are examples.

Thus, a device such as Zenfone 4, which has settings close to those of a high end, for example, is classified by the market as an intermediate due to its final value. However, within the Asus product range, Zenfone 2 is the company's flagship and its flagship product.

AndroidPIT motorola moto x4 3401
Moto X4 is behind Z2 Play and Z2 Force / AndroidPIT

The so-called Premium Intermediates are put on the market with good specs, different design and extra features, such as Moto X4 and LG Q6 +. However, no matter how the manufacturer places these devices as Premium or Premium intermediates, the market retains their respective ratings as intermediates.

After all, what a premium smartphone?

In Brazil, the Premium category was recently created by market analysts, however, it is not exactly the way some users think. These models need to be over $ 4,000 to be considered Premium and it is also essential that the device is above the top of the line brand.

Truly Premium devices are presented as objects of luxury and desire, have characteristics that set them apart from the current high-end and, in some cases, are placed on the market as exclusive or luxury products. Currently, iPhone X, Note 8 and Xperia XZ Premium fit this mode.

samsung galaxy note 8 note 7 front
Line Note Samsung's premium segment / AndroidPIT

Now you may be asking yourself: does a luxury category make sense in Brazil? Yes, it makes perfect sense and, by the way, this segment is one of the big bets of manufacturers due to the high profit margin that can be practiced on these products. There are companies that are shifting their focus to more basic lines and investing only in higher-end models like Sony. But remember, the premium product is the "cream" of the series, ie there is only one per manufacturer.

Many manufacturers use the adjective Premium to classify various types of models, although the Premium segment is unique and matchless. The luxury showcase of each brand.

For manufacturers, the Premium segment is advantageous in some respects, the main ones being: the public that consumes this segment is not directly affected by the economic crisis in the country, low-scale production and, as already mentioned, profit margins are higher.

So, dear reader, don't be impressed to learn that the iPhone X or Note 8 hit record sales in 2017. After all, in the Premium segment are those people we always refer to with the phrase: "who has who buys".

What do you think of this definition of Premium: marketing or necessity?

. (tagsToTranslate) more expensive Android smartphones (t) premium smartphone (t) more expensive Android phones (t) luxury market