Topic: ASPs
For Apple’s iPhone Sales, Size Matters – WSJ (Jan 28, 2017)
This article is a good counterpoint to another I commented on recently, which suggested a shift to older devices and therefore lower average selling prices for the iPhone last quarter. As I said with regard to that piece, I’m seeing little evidence of the trend mentioned, and in fact I’d expect a shift to larger devices to push ASPs up, if anything, This WSJ piece quotes some data to that effect, and has some good numbers around the mix between the base and Plus models and how it’s shifted over time. Apple clearly does sell older devices too, so this mix shift among the 7 variants isn’t the only factor, but I still think ASPs should be pretty healthy when Apple reports its results for last quarter.
via WSJ
Apple iPhone Price Under Pressure as Buyers Seek Cheaper Devices – Bloomberg (Jan 26, 2017)
This piece suggests falling ASPs due to iPhone buyers plumping for older models like the 6S rather than the new iPhone 7 models, but only quotes one analyst at Barclays to back up the claim. We’ll know soon enough what the ASP numbers for the December quarter look like, but they did fall this past year relative to the year earlier, in part because of the iPhone SE launch. It’s certainly also true that people are hanging onto phones longer, because they’re more capable, and that new installment plans from US carriers make the price of phones more transparent than the old subsidy model, and reduce the monthly cost once a phone is paid off. For all these reasons, I’m definitely seeing longer upgrade cycles for smartphones, but I see very little evidence that people are buying older phones new – in fact, all my conversations with carriers suggest the opposite – moving from an upfront cost to a monthly cost is driving people to higher-priced phones. In addition, the mix between the 7 and 7 Plus looks to have moved in favor of the larger device relative to earlier models, and that and interest in the jet black finish will also drive up ASPs. Color me skeptical at this point.
via Bloomberg