As above, so below
What’s changing are component prices. Growth in smartphone sales generally alongside competition from rapidly emerging new industry sectors such as artificial intelligence means component costs are climbing. To some extent, Apple and Samsung are protected against the impact of those increases as they can lock in prices in the long term. Smaller vendors, principally in the Android space, lack that flexibility, meaning they are left to compete for shrinking margins in a market defined by prices set by Apple and Samsung.
Those makers are about to face even 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 in the lower premium segment, which is projected to grow faster than the overall market.”
