Apple likely to outperform smartphone industry despite cost pressures: Experts
New Delhi, July 31
Apple is expected to outperform the broader smartphone industry despite mounting component cost pressures driven by the strength of its ecosystem, pricing power and loyal customer base, industry experts said on Friday after the company reported record June-quarter revenue.
According to Prabhu Ram, Head of the Industry Intelligence Group at CyberMedia Research (CMR), Apple delivered a fundamentally strong quarter, supported by record iPhone and Mac revenues, an all-time high installed base and resilient gross margins despite sustained memory cost inflation.
"Apple's ecosystem strength, pricing power and loyal installed base continue to give it a competitive advantage over Android OEMs, many of whom face a more difficult trade-off between protecting margins and sustaining volumes as component costs continue to rise," Ram said.
However, he noted that Apple's ability to absorb rising memory costs through inventory management and supply chain efficiencies is narrowing, while Services and Greater China revenues remain areas to watch.
Tarun Pathak, Research Director at Counterpoint Research, said Apple delivered another record revenue quarter in India, with Mac emerging as the standout performer, driven by strong adoption of MacBook Neo alongside robust demand for the iPhone 17 series despite supply constraints.
He has expected that Apple to register single-digit volume growth but double-digit value growth in India during calendar year 2026 and said an iPhone price hike is highly likely as memory prices continue to rise.
"Apple is expected to outperform the industry across its key hardware categories, driven by the strength of its installed base and the initial positive reception of Siri AI," Pathak said.
Moreover, Apple reported June-quarter revenue of $109.4 billion, up 16 per cent year-on-year, while diluted earnings per share rose 29 per cent to $2.02.
CEO Tim Cook said the company achieved June-quarter revenue records across every geographic segment, including India, despite supply chain constraints and foreign exchange headwinds.
Earlier in April, the US-headquartered firm announced that John Ternus, Senior Vice President of Hardware Engineering, will succeed Tim Cook as Chief Executive Officer, effective September 1.
However, Cook will transition to the newly created role of Executive Chairman, where he will engage with global policymakers and assist with select company matters.
— IANS
Reader Comments
As an Indian consumer, I appreciate the value Apple offers in the long run. My iPhone 12 is still going strong after 4 years, whereas my friend's Android phone needed replacement twice. Value for money in the long term, despite the high upfront cost.
The price hike news is concerning for Indian customers. Memory prices rising globally means iPhones will get even more expensive here. With import duties and taxes, the gap between US and Indian prices is already significant. Hope Apple considers India-specific pricing. 🤔
It's fascinating to see Apple's resilience in India. The MacBook Neo adoption is a game-changer for Indian professionals and students alike. As someone who works in tech consulting, I've seen many colleagues switch from Windows to Mac for the build quality and battery life.
Am I the only one who thinks Apple's premium pricing is getting out of hand in India? The iPhone 17 series is already beyond reach for most middle-class families. While I respect the brand, I wish they'd offer more budget-friendly options or better EMI schemes for Indian consumers.
The transition from Tim Cook to John Ternus is interesting. Cook has done wonders for Apple's India strategy with the Make in India initiative. I hope Ternus continues this momentum and focuses more on local manufacturing to keep prices reasonable for us. 🏭
R We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.