Apple should break its average iPhone price record twice next month as customers opt for the more expensive “Pro” models that boost the tech giant’s margins.
Demand for the new iPhone 14 unveiled earlier this month is already robust enough to forecast the global “average selling price” – or ASP – to hit a record high of $892 in the September quarter and $944 over the course of the quarter. December, according to Counterpoint Research, a data provider, which bases its projections on the demand des consommateurs, the intelligence du marché et les discussions avec les fourniers.
The current record is $873, reached in the fourth quarter of last year.
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The average selling price of iPhones is a key measure of Apple for Wall Street, because smartphone sales still account for roughly 50% of the group’s revenue. The upward trajectory of these prices — from just $690 at the end of 2015 — is just as important as the fact that Apple chose not to raise the prices of its devices earlier this month during its annual product launch phase. A decision that some analysts are qualified with a great surprise of the event.
The driver of this trend is the popularity of the iPhone 14 Pro and Pro Max models, which have a fast plus chip, a 48-megapixel camera and a new information center called “Dynamic Island”.
When research group Evercore ISI polled 4,000 consumers this month, it found that 56% of people likely to buy an iPhone planned to buy a Pro model, up from 41% last year. Next year’s ASP is expected to be around $940, which is around 10% upside in the iPhone 13 cycle.
“We are raising our iPhone revenue estimates for the next four quarters on the back of stronger ASPs than forecast,” Evercore analyst Amit Daryanani told clients.
The figures suggesting that Apple is in a good position today in January 2019, when it was restricted from the publier are first avertissement of income in 16 and due to the weakness of iPhone sales in China. .
From China’s largest market, thanks to the launch of 5G-compatible iPhones in 2020, Huawei has been a service of selling 5G phones in the suite of US sanctions.
Between the end of 2020 and the end of 2021, Apple’s market share in China fell from 15.9% to 23%, according to Counterpoint.
“The other Android manufacturers, Vivo, Oppo and Honor, are all entering the premium segment, but premium brand status cannot be built overnight,” said Archie Zhang, an analyst at Counterpoint.
On a global scale, the $400+ high-end phone market has topped global sales for nine consecutive quarters, with Apple taking 57% of the market share last quarter, according to Counterpoint data.
The ultra-premium segment: the phones do not have a price above 1,000 dollars, almost doubled in the last quarter in relation to its case, Apple captured 78% of the market.
The upward trajectory of iPhone ASP reflects the success of a strategy launched by Apple in 2018 when it stopped reporting the number of iPhones sold each quarter. The move had dismissed the iPhone’s “biggest concerns,” while Apple said it was focusing on volume over revenue and margins.
Today, analysts estimate that Apple is in another transition for ASP to “valeur utilisateur à vie” – a strategy to increase the income of more than a thousand iPhone users with a panoply of expansion. of services
In late 2020, the company launched Apple One, which offers a suite of Apple services, notably Music and iCloud, at a reduced price. The next logical step is for an iPhone itself to be part of the package, allowing users to pay monthly fees in perpetuity in exchange for services and a new smartphone tous les ans ou deux, without incurring initial fees.