Apple enjoys exceptional pricing power. The company consistently commands premium pricing for its products (e.g., $1000+ iPhones) without losing customer demand, thanks to its strong brand and differentiated user experience.
Apple routinely captures a disproportionate share of industry profits – about 85% of global smartphone sector profit) – despite selling a minority of total units, underscoring its ability to monetize its products far more effectively than competitors.
In the most recent quarter, Apple’s gross margin reached roughly 46%, up 180 basis points year-on-year, reflecting both premium pricing and tight cost control.
The mix shift toward high-margin services (App Store, subscriptions) further enhances pricing power, as Apple can raise service fees or hardware prices gradually and loyal customers continue to pay. Overall, Apple has ample room to maintain or even expand its already high margins, demonstrating strong pricing power.







