Apple’s 9 September new products event delivered no surprises as they were incremental updates across its line-up. Apple is simply doubling down on its real “AI” strategy: Affordable, Addictive, and Intelligent. The focus is to deepen ecosystem lock-in through health features, price-tiered devices, and smarter integration for Apple users rather than chasing for the latest and greatest innovation.
An Apple a day keeps the doctor away
The Apple Watch Series 11 adds hypertension detection and sleep scoring as consumers’ interest in proactive health monitoring continues to increase. With high blood pressure prevalence affecting 16.7% of adults in Western Europe and 24.3% in Saudi Arabia in 2024, Apple’s new health features will resonate strongly with ageing populations and wellness-focused consumers. Early generations of Apple Watch have seen ECG and fall detection added, and the new features for the new range reinforce the Apple Watch’s appeal in health tech.
No cheap Apple
The Apple Watch SE3 is priced at USD249 in the US and offers an attractive price point for iPhone users who are on the fence about wearables. It is affordable and accessible enough to appeal to price-sensitive consumers in emerging markets and even consumers in developed markets who are not keen to fork out on discretionary purchases amidst economic uncertainty. The USD150 gap between the SE3 and Series 11 is quite significant, and the expanded range is expected help Apple maintain its stranglehold on the smart wearables market even as smart eyewear from Ray-Ban and Oakley enters the market.
Apple’s user base is famously loyal; they do not easily switch to other brands despite the abundance of cheaper and more technologically advanced alternatives. The USD599 iPhone 16e targets budget-conscious users and consumers in emerging markets. This model could lure Android users into Apple’s ecosystem.
Same old Apple
The base iPhone 17 retains its USD799 price tag, offering premium features like a 6.3" display, 120Hz refresh rate, and 3000 nits brightness, allowing the entry model to be competitive without alienating value-seeking buyers. Apple’s segmentation strategy is further refined with the iPhone 17 Air (USD999), which introduces a titanium frame and a slim form factor reminiscent of the Samsung Galaxy S25 Edge. Prices for the higher range (iPhone 17 Pro and iPhone 17 Pro Max) also avoid a price bump despite import tariffs.
Apple’s Garden of Eden
Apple Intelligence is the linchpin of Apple’s ecosystem strategy. Its integration into products is expected to deepen user engagement and drive services revenue. AirPods Pro 3 now offer live translation as part of their Apple Intelligence integration. Despite competition from lower-priced alternatives like Anker and Huawei, Apple is projected to retain a dominant 17% volume share of the TWS earbuds market in 2025.
The iPhone 17 Pro and iPhone 17 Pro Max models remain unchanged in pricing (USD1,099 and USD1,199), signalling Apple’s confidence in its premium tier. While feature upgrades are incremental, the consistency in pricing suggests Apple is banking on brand loyalty and ecosystem entrenchment to sustain margins.
However, iPhone retail volume sales in China are poised to continue sliding, from a peak of 17.5% in 2023 to 13.6% in 2025. The lack of Apple Intelligence on China-bound models due to regulatory constraints, rising consumer support for local brands amid the US-China trade war, and government subsidies favouring domestic manufacturers are impacting their appeal among Chinese consumers.
A bigger slice of (Apple) pie
The new products reflect Apple’s strategy to prioritise meaningful improvements to the user experience over superficial feature additions. Apple Intelligence, enhanced health capabilities, and greater affordability are expected to drive upgrades among existing users in Q4 2025 and into 2026. This also underscores Apple’s strength as a tech giant, maintaining price stability despite rising costs from tariffs.
In 2025, iPhone sales are projected to reach 212 million units, reinforcing Apple’s dominance in the global smartphones market. Its strategic focus on AI, health and affordability will not only sustain leadership in smartphones, smart wearables and TWS earbuds, but also accelerate ecosystem adoption and boost revenue from services.
To know more about how Apple performs against its competitors, please read our report, The World Market for Consumer Electronics.