Apple's Premium Strategy Pays Off as iPhone 18 Pro Demands Soar

Apple's decision to launch the more expensive iPhone 18 Pro and Pro Max months before the base model appears to be paying off. According to Counterpoint Research, the iPhone 18 Pro series recorded 12% year-over-year growth in its first three days of sales in China.

This helped Apple capture the No. 1 position in China during Week 38 with a 33% smartphone market share. The performance came despite a decline in weekly smartphone sales in China due to soft consumer demand and higher memory costs.

Gene Munster, Managing Partner at Deepwater Asset Management, also sees evidence that Apple's premium-first strategy is working. His tracking across eight countries shows delivery lead times for the Pro models are 15% longer than a year ago, suggesting consumers may be choosing premium models rather than waiting for the base iPhone.

Munster estimates the $2,100 Duo could capture 35% market share in its first year and expects it to represent about 8% of iPhone units next year but 14% of iPhone revenue, with higher average selling prices potentially lifting overall iPhone revenue by 10%.