As above, so below
What’s changing are component prices. Growth in smartphone sales generally alongside competition from rapidly emerging latest industry sectors reminiscent of artificial intelligence means component costs are climbing. To some extent, Apple and Samsung are protected against the impact of those increases as they will lock in prices in the long run. Smaller vendors, principally within the Android space, lack that flexibility, meaning they’re left to compete for shrinking margins in a market defined by prices set by Apple and Samsung.
Those makers are about to face much more pressure, Counterpoint said, as Apple extends the breadth of the iPhone lineup.
“By expanding its lineup across multiple price tiers, including the growing “e” series, and potential adjustments to the Pro and Base launch cycles, Apple is strategically positioning itself to capture rising demand from aspirational consumers, particularly in emerging markets, and to strengthen its presence within the lower premium segment, which is projected to grow faster than the general market.”