Apple Seen Driving Emerging-Market Growth Through Premium iPhone Upgrades

Dow Jones08-28 15:57

0757 GMT - Apple's growth in emerging markets is likely to be driven increasingly by premium iPhone upgrades rather than new user additions, Omdia analyst Sanyam Chaurasia says in a note. Apple is shifting its focus toward monetizing its expanding installed base in markets including India, Brazil and Mexico through greater adoption of higher-priced Pro-series models, he says. India presents the biggest opportunity for user upgrades, with Pro-series penetration still relatively low despite rapid growth in iPhone users. Omdia's scenario analysis suggests that a higher Pro-series mix could generate more revenue than shipment growth alone, supported by improving financing options, trade-in programs and rising incomes. Apple is increasingly relying on product-mix improvements to drive growth as emerging markets mature, Chaurasia adds.

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