Apple Inc. (NASDAQ: AAPL) is seeing early indications that its premium-first strategy is gaining traction, with strong demand for the iPhone 18 Pro series in China and extended delivery times across major markets. According to data from Counterpoint Research, the iPhone 18 Pro series recorded 12% year-over-year growth during its first three days of sales. This performance helped Apple capture the No. 1 position in China during Week 38 with a 33% market share.
The sales figures come despite a broader decline in China’s weekly smartphone sales, which have dropped by double digits year over year since July. Counterpoint Senior Analyst Ivan Lam suggested that the delayed launch of the base iPhone 18 model and price hikes of over $200 on many Chinese flagship models may have strengthened the iPhone’s relative value proposition, driving consumers to trade up to the Pro series.
Deepwater Asset Management Managing Partner Gene Munster also observed evidence supporting the premium strategy. His tracking across eight countries shows delivery lead times for the Pro models are 15% longer than a year ago, contrary to expectations that they would be shorter. Munster noted that the data suggests consumers are choosing premium models rather than waiting for the base iPhone, which is not expected until spring 2027.
Munster also commented on the company's upcoming foldable device, the iPhone Duo. He expects the $2,100 device to capture 35% market share in its first year, with roughly one-third of Pro Max users potentially switching to the foldable. He anticipates the Duo will represent about 8% of iPhone units next year but 14% of iPhone revenue due to its higher average selling price. Munster believes current consensus estimates for fiscal 2027 iPhone revenue are too low.
