Samsung is no longer the value option
Samsung’s new price increases match this at the high end. They mean Apple now offers smartphones that compete on price at every market sector. To put this into context, Samsung’s highest end 1TB Galaxy S26 Ultra now costs as much as an entry-level (if there is such a thing) iPhone Duo. At $1,399, the Galaxy S26 Ultra now costs more than the iPhone 18 Pro Max, which starts at $1,299.
The message is pretty clear: iPhones may not be cheap, but as the price difference erodes, Apple’s value proposition makes its devices hugely attractive to consumers. This new reality is already generating strong results in China and India, while Apple still leads in the US. There is some speculation Apple is dipping into its cash pile to enable it to meet these price bands, but that may matter less, given that the company is on the cusp of major proliferation in services and accessories.
That proliferation is already taking place. Only this week Apple Pay launched in India, and the company continues to broaden its services offerings with products including AppleCare One, Apple Upgrade, Apple Business and its Creator Studio. But the proliferation is also coming with accessories and smart home product families, with Apple fully expecting a good response from its customers for what it is preparing to offer. To some extent, even if margins on Apple’s biggest-selling product are squeezed, services and a focus on accessories may help push revenue higher, even if there is some risk to the brand.
