Apple Sees 3% Gain in Premium Smartphone Sales, Led by Emerging Markets

Apple's premium smartphone sales increased 3% YoY in H1 2025, led by emerging markets India and China. Apple's market share dipped 3% despite the sales growth. The global premium smartphone market saw an 8% sales increase YoY, with Samsung seeing a 7% sales increase. Apple's sales were driven by easy financing and strong offline presence, while GenAI-capable devices accounted for over 80% of premium smartphone sales.

Apple Inc. unveiled its iPhone 17 lineup at the "Awe-dropping event," featuring the slimmer and more energy-efficient iPhone Air with an A19 Pro chip and in-house modems. Despite a $1 billion tariff hit, Apple kept prices unchanged, raising concerns over margins as shares fell 1.5% Apple takes $1 bn tariff hit without raising prices for iPhone 17 lineup; stock ends 1.5% lower^[1].

The iPhone 17 lineup includes the iPhone Air, which features a high-density battery and the newly developed A19 Pro processor chip, designed for improved energy efficiency. It also includes a custom "N1" chip for Wi-Fi communications and a "C1X" modem for cellular data, both developed in-house. This shift away from legacy suppliers like Broadcom and Qualcomm contributed to a 2.6% and 1% decline in their shares, respectively Apple takes $1 bn tariff hit without raising prices for iPhone 17 lineup; stock ends 1.5% lower^[1].

Apple is grappling with an estimated $1 billion tariff burden in the current fiscal quarter, stemming from import duties imposed during former U.S. President Donald Trump's administration. Despite this, Apple has not passed these costs on to consumers, opting instead to maintain price parity with previous models. The 256 GB iPhone 17 base model is priced at $799, while the iPhone 17 Pro with 256 GB of storage will start at $1,099 Apple takes $1 bn tariff hit without raising prices for iPhone 17 lineup; stock ends 1.5% lower^[1].

This pricing strategy signals Apple's intent to maintain competitive positioning in key markets such as India and China, where pricing remains a critical factor in driving volume. In India, where Apple has been expanding its offline retail presence, the decision to hold prices steady is expected to support sales momentum heading into the festive season Apple takes $1 bn tariff hit without raising prices for iPhone 17 lineup; stock ends 1.5% lower^[1].

Apple's premium smartphone sales increased 3% YoY in H1 2025, led by emerging markets India and China. Despite the sales growth, Apple's market share dipped 3% . The global premium smartphone market saw an 8% sales increase YoY, with Samsung seeing a 7% sales increase. Apple's sales were driven by easy financing and strong offline presence, while GenAI-capable devices accounted for over 80% of premium smartphone sales .

The market's tepid reaction to the iPhone 17 lineup suggests investors are wary of how Apple plans to sustain its profitability in the face of rising input costs and intensifying competition. Apple's willingness to absorb cost increases to preserve its customer base, even at the expense of near-term margins, is a significant factor to watch Apple takes $1 bn tariff hit without raising prices for iPhone 17 lineup; stock ends 1.5% lower^[1].

References:
Apple takes $1 bn tariff hit without raising prices for iPhone 17 lineup; stock ends 1.5% lower^[1] https://economictimes.indiatimes.com/markets/stocks/news/apple-takes-1-bn-tariff-hit-without-raising-prices-for-iphone-17-lineup-stock-ends-1-5-lower/articleshow/123797931.cms
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