Apple set to outperform smartphone industry, say experts

Industry experts said Apple's strong ecosystem, pricing power and loyal customer base are expected to help it outperform the smartphone industry despite rising component costs. The company reported record June-quarter revenue, while analysts forecast continued value growth in India

New Delhi: 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.

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“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 expects Apple to register single-digit volume growth but double-digit value growth in India during the 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 USD 109.4 billion, up 16 per cent year-on-year, while diluted earnings per share rose 29 per cent to USD 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.