Analyst: Apple's strategy is very similar to Samsung's past approach.

Investing.com - According to a recent research report from Bernstein, Apple (NASDAQ:AAPL) is critically shifting its product strategy to emulate the multi-tiered pricing model once perfected by competitor Samsung.

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Analysts believe that the iPhone manufacturer is intentionally expanding its price range, aiming to target the low-end market to gain share on one hand, and on the other, raising prices on high-end models to protect its industry-leading profit margins.

This strategic “price tiering” approach is similar to Samsung’s smartphone strategy from 2009 to 2013, during which Samsung’s global market share surged from 4% to 32%.

Refining Product Portfolio and Market Share Growth

This shift marks Apple’s departure from its traditionally streamlined product lineup toward a more refined product portfolio, covering a broader spectrum of consumer purchasing power tiers.

By inserting more price points into its hardware product line, Apple seeks to capitalize on supply shortages and the competitive gaps in the entry-level segment, while maintaining its brand reputation.

Bernstein points out that this tiered strategy allows the company to drive significant sales in emerging markets, while leveraging its high-end “Pro” and “Ultra” models to offset rising component costs and inflationary pressures.

It is still too early to determine how this sales-centric strategy will impact Apple’s hardware gross margins in the long term. The “Samsung strategy” has proven highly effective in capturing dominant market share, but it also requires a complex supply chain and diversified manufacturing capabilities.

Analysts maintain a “buy” rating on the stock with a target price of $340, believing that Apple’s exceptional ecosystem lock-in and service revenue provide a structural advantage that Samsung lacked during its initial rise.

Addressing High-End Market Saturation

As the global smartphone market enters a mature phase, shifting to a broader price range is seen as a necessary evolution to sustain growth.

However, within the hardware segment itself, Apple’s ability to navigate the value and luxury sub-segments is viewed as a key differentiator, which could enable it to outperform peers throughout fiscal year 2026.

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