Increased adoption of iPhone 6 Plus in U.S., China set to boost Apple Inc profit margins

Posted:
in iPhone edited January 2015
Usage data from Apple's two largest markets is showing a significant increase in buyers' preference for the large display of iPhone 6 Plus as supply increases, indicating a richer profit mix destined to polish the company's earnings.

iPhone 6 Plus mix in US, China


New usage data reported by AppLovin indicates that Apple's more expensive, 5.5 inch iPhone 6 Plus is incrementally increasing in its popularity when compared to the 4.7 inch iPhone 6 model, in both the U.S. and in China.

In late November, the firm reported that iPhone 6 Plus accounted for 20 percent of U.S. usage and 35 percent in China in data observed through the end of October.

Through the first week of January however, the adoption ratio for iPhone 6 Plus increased 5 percentage points in both markets, reaching 25 percent in the U.S. and 40 percent in China.

"This much movement in two of the largest smartphone markets is significant, especially if you consider that these new ratios aren't just for new sales of devices," the company explained.

"Because the original devices sold in the first month and a half of the availability at a 80/20 or 65/35 pace are still active--the new devices added have to dilute the original ratios."

The usage data may indicate that buyers of the larger model are using it more, the initially constrained supplies of iPhone 6 Plus indicate, as the firm states, "the iPhone 6 Plus is booming--and all indications are that demand for this device outstripped demand by a wide margin."

Independent research by Morgan Stanley analyst Katy Huberty provided even richer preference ratios for iPhone 6 Plus, the the U.S. (26 percent) but principally in China, where 51 percent of buyers said they planned to buy Apple's largest phone. Those numbers also included iPhone 5s and "other iPhone" as options in the mix.

Huberty also highlighted the higher Average Selling Price and profit margin of iPhone 6 Plus over the base iPhone 6, and the fact that more than half of all buyers (of both iPhone 6 and 6 Plus) were opting to splurge for the premium priced 64GB or 128GB tiers, which deliver even higher margins, as much as 61 percent greater than the 16GB entry models.
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Comments

  • Reply 1 of 29
    Jaws will drop during the earnings report, that much is sure.
  • Reply 2 of 29
    The 6 plus is undoubtedly Apple's greatest iPhone, it's a dream to use.
  • Reply 3 of 29
    sog35 wrote: »
    Damn.

    iPhone 6 Plus $850 phones are selling like hotcakes (64 GB which is the most popular)

    Where are those idiots that said Apple needed to make a $300 iPhone?

    But but but... Android... market share... winning...

    :D
  • Reply 4 of 29
    Hey, I said this would happen months ago, when the 6 and 6Plus first came out. Everyone said how the Plus was a dud because some many more regular 6's were being sold.

    I commented at the time that I thought it was a matter of supply, and that once more of the Pluses were in the pipeline, we would see a substantially different result.

    Maybe I should become an analyst. Anyone hiring?
  • Reply 5 of 29

    When will their earnings be reported?

  • Reply 6 of 29
    mike1mike1 Posts: 1,621member

    "...that demand for this device outstripped demand by a wide margin"

     

    Doesn't anybody proofread anymore?

  • Reply 7 of 29
    If you use a 6+, this doesn't come as a big surprise. I've falllen in love with it, and it's become my primary computer. Everyone else I've talked to who has one feels the same way. Good word of mouth is going to move a lot of 6+'s.

    Documents are very readable on the large retina screen. Paired with a bluetooth keyboard, it becomes a very practical writing machine.

    What's really cool - if you use it with a TextBlade (announced last week), you can write anywhere with just what's in your pocket. Pic attached. Sweet setup.

    [IMG ALT=""]http://forums.appleinsider.com/content/type/61/id/54550/width/500/height/1000[/IMG]
  • Reply 8 of 29
    robmrobm Posts: 1,068member
    mike1 wrote: »
    "...that demand for this device outstripped demand by a wide margin"

    Doesn't anybody proofread anymore?

    Not round these here parts.
    Including the especially annoying quirk of "the double quote" in many articles.
    Some of the err, reporters must be paid by the word. :D
  • Reply 9 of 29
    Jaws will drop during the earnings report, that much is sure.

    Not at Microsoft, now that WX is a free upgrade.
    http://news.microsoft.com/windows10story/?OCID=EVENT_SOC_TW_ORGANIC_LIVESTREAM30M&linkId=11851974

    edit: hmm, that link gives me zilch. Way to go MS

    http://tinyurl.com/kzjcae9
  • Reply 10 of 29
    mhiklmhikl Posts: 471member
    I was going to get the latest iPad mini and the iPhone 5S, top storage for each. But I now realise that my heavy iPad 3, 64g is good enough for my needs for movies and other video. Though over kill for my phone needs and habits, the 128 iPhone 6+ will do instead and with care should last for years. The Internet, Books, music, apps and phone connection are the orders of my purpose. And that should save about a third my original costs for the other two products.
  • Reply 11 of 29
    bobschlobbobschlob Posts: 1,074member

    Probably just me but;

    who the hell is  "AppLovin"? 

  • Reply 12 of 29
    bobschlobbobschlob Posts: 1,074member
    Quote:

    Originally Posted by Cyberzombie View Post

     

    When will their earnings be reported?




    Nobody knows.

    It's a secret.

  • Reply 13 of 29
    mike1 wrote: »
    "...that demand for this device outstripped demand by a wide margin"

    Doesn't anybody proofread anymore?

    I believe criticism of AI writers and articles is no longer allowed in the forums. You're allowed to compliment them on grammar issues, but not criticize. ;)
  • Reply 14 of 29

    Apple reports earnings the second Tuesday of next week.

  • Reply 15 of 29

    Sorry, I was attempting humor related to BobSchlob comment that the earnings report was a secret.

  • Reply 16 of 29
    Are they sure these are actual iPhones and not Chinese knock offs?!? lol
  • Reply 17 of 29
    rogifanrogifan Posts: 10,669member
    sog35 wrote: »
    This is why I think Apple should report total iOS devices (iPad+iPhone) and not separate them.

    The lines between the iPad Mini and 6+ are blurred.  

    It will also not give Wall Street an excuse to bash iPad sales

    Hey I agree with you for once! I say the less the better. That's why I'm glad Apple decided not to break out ?Watch.
  • Reply 18 of 29
    I recently returned an iPhone 6plus 64gig and purchased a 6. I loved the 6plus's screen size and hated the form factor. The question I couldn't answer was how do I carry it easily? it doesn't really fit in my pocket unless I am standing up. Yes, I can carry it in a small sack or briefcase, but I don't always carry either. Way too big to fit in a shirt pocket. Too wide to fit in my cup holder in the car or anywhere easily, so I gave up and went to a 6. I am missing the text size of the 6 plus. Can't have everything.
  • Reply 19 of 29
    xixoxixo Posts: 414member
    2old4fun wrote: »
    Apple reports earnings the second Tuesday of next week.

    Is that on February 30th?
  • Reply 20 of 29
    dasanman69dasanman69 Posts: 12,937member
    xixo wrote: »
    Is that on February 30th?

    No silly, the only month that has 2 Tuesdays in a week is Octember
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