Apple's capacious iPhone 6 models to drive higher sustained ASPs, analyst says

Posted:
in iPhone edited November 2015
Based on unlocked iPhone price checks, Piper Jaffray analyst Gene Munster believes Apple's latest handsets will see higher sustained ASPs thanks to upgraded storage capacities and the new top-end iPhone 6 Plus model.




In a research note provided to AppleInsider, Munster says he suspects iPhone ASPs will again peak in first full quarter following launch, but points to "unique factors" that could contribute to greater and more sustained changes going into 2015.

First, the new 128GB iPhone 6 Plus "phablet" is to be offered for $749 off-contract price, a $100 increase from last year's top-end iPhone 5s model. Munster believes the new tier will pull up ASPs by $33, assuming two-thirds of Apple's iPhone sales come from high-end iPhone 6 units and half of those are from the iPhone 6 Plus.

Secondly, Apple's decision to replace the 32GB storage option with a 64GB tier incentivizes consumers to go with the more capacious option. The 4x jump from 16GB to 64GB for $100 is much more attractive than a 2x increase from 16GB to 32GB seen with the iPhone 5s.

Further, Munster says 16GB iPhone sales have been on the decline. According to survey data taken over the past three iPhone launch cycles, 35 percent of customers were looking to purchase a 16GB iPhone 5s, which compares to 44 percent for the iPhone 5 and 49 percent for the iPhone 4S.

"We believe the added incentive of 4x storage at the higher price tier vs. 2x could result in a continued shift toward higher capacity, higher ASP, and higher margin devices over the next few quarters."

As for international pricing, Munster notes that Apple kept low-, mid- and high-range rates nearly unchanged, with the exception of a one-percent jump in the mid-tier with the iPhone 5s. With the upcoming launch, Apple's high-end handsets will include the iPhone 6 and 6 Plus, while the iPhone 5s drops down to cover the middle at $99 on contract and the iPhone 5c goes free on contract.

The analyst culled unlocked handset pricing data from six countries, including U.S., the UK, France, Germany, Brazil and China, all major markets for Apple. Chinese data is based on reseller preorder pricing, but no information was found regarding iPhone 6 and 6 Plus cost in Brazil.

Munster remains a buyer of AAPL and rates the stock as overweight.
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Comments

  • Reply 1 of 27
    So you're saying Apple's selling of a higher priced model will bring ASP higher? Great analysis Gene¡
  • Reply 2 of 27
    128 GB iphone 6+ is going for 949 not 749. 749 is for the 16GB iPhone 6+
  • Reply 3 of 27
    chris_cachris_ca Posts: 2,543member
    When using acronyms, aren%u2019t you supposed to spell it out the first time? (for us clunkheads)

    ASP =
    Association of Societal Pathogens
    Active Server Pages
    Association of Software Professionals
    American Society of Primatologists
    etc%u2026

    (Yes I know what it is)
  • Reply 4 of 27
    eriamjheriamjh Posts: 1,341member
    Buggers got me spending $100 more for the 6 Plus 64gb model (when I would have paid $100 more for the 32gb model anyway).
    So, it's working.
  • Reply 5 of 27
    eriamjh wrote: »
    Buggers got me spending $100 more for the 6 Plus 64gb model (when I would have paid $100 more for the 32gb model anyway).
    So, it's working.

    Yeah, me too. The 16 - 64 - 128 spread was pure genius.

    Reminds me of the guy who stood up from the toilet stool and had a quarter fall out of his pocket and into the dirty water. He contemplated this event for a moment before getting another quarter out of his pocket and throwing that into the stool as well while declaring, "For 25 cents, no, but for 50 cents, yes!"
  • Reply 6 of 27

    Sounds like good news. It probably would be even better if I knew what ASP was...

  • Reply 7 of 27
    Quote:

    Originally Posted by mac8468k View Post

     

    Sounds like good news. It probably would be even better if I knew what ASP was...




    ASP, I believe it was a type of snake the bit and killed Cleopatra about 2,100 years ago.

  • Reply 8 of 27
    Quote:
    Originally Posted by mac8468k View Post

     

    Sounds like good news. It probably would be even better if I knew what ASP was...


    Average Selling (or Sales) Price

     

    http://en.wikipedia.org/wiki/Average_selling_price

  • Reply 9 of 27

    This was one of the most aggravating articles to read... ASP is not a common acronym.  A real journalist writes "ASP (Average Selling Price)" at the start of an article to inform their readers.

  • Reply 10 of 27

    I always get the iPhone with 64GB capacity. For me it's a $100 price cut. That's super!!

  • Reply 11 of 27
    Yup. I'm getting 64 GB 6 instead of the 16.
  • Reply 12 of 27
    Originally Posted by starbot View Post

    A real journalist writes "ASP (Average Selling Price)" at the start of an article to inform their readers.



    I thought the standard format was the other way around. First elucidate the phrase itself and then explain via parenthesis that its abbreviation will be used throughout the remainder of the article.

     

    Legal documents will say “[Company name], hereafter ‘the plaintiff’.” when they want to shorten and standardize things.

  • Reply 13 of 27
    rogifanrogifan Posts: 10,669member
    It will be interesting to see which model sells better. A lot of people in my Twitter feed are going with the 4.7" even though the 5.5 has better specs because it's not so huge. I'm sitting this one out. Mostly because I prefer one-handed use but also because Apple chose to make the phablet better.
  • Reply 14 of 27
    Originally Posted by Rogifan View Post

    ...“better specs”...

  • Reply 15 of 27
    This was written very poorly. I hope Mr. Campbell doesn't give up his day job.
  • Reply 16 of 27
    This was written very poorly. I hope Mr. Campbell doesn't give up his day job.
    So you want him to keep writing?
  • Reply 17 of 27
    MacProMacPro Posts: 19,379member
    So you're saying Apple's selling of a higher priced model will bring ASP higher? Great analysis Gene¡

    Ah, but when a writer uses an anacrnym, the results on the graph can be made higher than when they don't as no one knows WTF you mean It's a simple case of UAMMFS (using acronyms make me feel smarter). :D
  • Reply 18 of 27
    MacProMacPro Posts: 19,379member
    tonypie wrote: »

    ASP, I believe it was a type of snake the bit and killed Cleopatra about 2,100 years ago.

    ROFL

    (relatively ordinary funny language) Damn, now what does that mean ... ;)
  • Reply 19 of 27

    While the ASP of the phones will go up, I've seen a few writers mention they will no longer need their ipad mini or air if they get the 6 plus.  Time will tell if these phones cannibalize apple's tablet sales and if the larger phone prices make up for it. 

  • Reply 20 of 27
    techlover wrote: »
    While the ASP of the phones will go up, I've seen a few writers mention they will no longer need their ipad mini or air if they get the 6 plus.  Time will tell if these phones cannibalize apple's tablet sales and if the larger phone prices make up for it. 
    That's alright. They'll just making iPad larger.
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