March 27, 2025 – In a blog post released yesterday (March 26), market research firm CIRP reported on a prevalent strategy among consumer brands: the “good-better-best” tiered product approach. Typically, it’s the “better” mid-tier options that see the highest sales volumes. However, Apple defies this conventional wisdom, with its iPhone and Mac lines seeing a significant lead in sales from their top-tier models, shedding light on the unique branding and high-profit margins that underpin Apple’s business strategy.
The consumer electronics industry, including giants like Samsung and Sony, generally adheres to this three-tier strategy, where the mid-range products dominate sales, with the entry-level and premium offerings trailing behind. In some cases, the premium models are merely used to highlight the “value for money” of the mid-tier options.
Yet, over the past five years, data from the U.S. market tells a different story for Apple. The iPad Pro series has accounted for 38%-48% of total iPad sales, far outpacing other models. Similarly, the iPhone and Mac lines exhibit a “more expensive, more sold” trend, with the top-tier models driving the majority of revenue and supporting Apple’s gross margin of over 38%.
While the iPad lineup, comprising the mini, Air, and Pro series, has staggered release cycles and significant variations in specifications, leading to a slightly less concentrated sales distribution compared to the iPhone and Mac lines, the Pro series still holds the top spot.
