Rising iPhone ASP in Q1 hints at healthy iPhone 6s sales

Posted:
in iPhone edited January 2016
In first quarter financial results announced on Tuesday, Apple's average selling price (ASP) for the iPhone rose to $690.50, suggesting a fairly healthy demand for the iPhone 6s and 6s Plus which launched in September.




By comparison, the same quarter of 2014 saw iPhone's ASP hit $687. If the figure had decreased year-over-year, it might indicate that shoppers were skewing towards the iPhone 6/6 Plus, or even 2013's iPhone 5s.

Apple sold just under 74.8 million iPhones during the December quarter, a very slight increase over the 74.5 million units sold a year ago. While that number may still be disappointing to some analysts familiar with growth percentages in the double digits, others had been worried that iPhone numbers might be flat or even decrease, hinting at "peak iPhone."

A number of reports have raised concerns about weak demand for 6s models, particularly after signs that Apple was cutting production for the March quarter. Suppliers such as Foxconn, Catcher, and TPK have reported either lower-than-expected December quarter figures or adjusted 2016 spending.

Slower production has been linked to an "inventory adjustment" instead of low demand though, giving retailers a chance to empty out stockpiled phones.

Comments

  • Reply 1 of 15
    jfc1138jfc1138 Posts: 3,090member
    Given they've a customer base to satisfy that's a nice turn of events. I do like the s year's offerings and this one is no different. 
    edited January 2016
  • Reply 2 of 15
    On the conference call Tim said 60% of the install base has not yet upgraded to the 6 series phones. That seems awfully high at this point.
    cnocbui
  • Reply 3 of 15
    Healthy? Ha! 690.5 from 687 = increase of 1/2 of 1 percent. They're not even keeping up with inflation.
  • Reply 4 of 15
    dasanman69dasanman69 Posts: 13,001member
    On the conference call Tim said 60% of the install base has not yet upgraded to the 6 series phones. That seems awfully high at this point.
    There are still a lot of iPhones 5/5s/5c out there. Many in the hands of the second owner plus all those that don't like the larger size form factor. 
    cornchip
  • Reply 5 of 15
    eightzeroeightzero Posts: 2,632member
    On the conference call Tim said 60% of the install base has not yet upgraded to the 6 series phones. That seems awfully high at this point.
    There are still a lot of iPhones 5/5s/5c out there. Many in the hands of the second owner plus all those that don't like the larger size form factor. 
    I've reached peak iPhone with my 5s. It serves my current needs nicely. At some point in the future, I expect to need to replace it - a battery fail, or some Killer Feature(tm) I can't live without. 
    cornchip
  • Reply 6 of 15
    jfc1138jfc1138 Posts: 3,090member
    konqerror said:
    Healthy? Ha! 690.5 from 687 = increase of 1/2 of 1 percent. They're not even keeping up with inflation.
    Except, of course, that's not what was described as "healthy" was it?
    anantksundaramronn
  • Reply 7 of 15
    On the conference call Tim said 60% of the install base has not yet upgraded to the 6 series phones. That seems awfully high at this point.
    There are still a lot of iPhones 5/5s/5c out there. Many in the hands of the second owner plus all those that don't like the larger size form factor. 
    I think it would be smart for Apple to release a 4" phone with 4.7" specs. Have three sizes for the flagship device like they do with iPad.
    ronncornchipbestkeptsecret
  • Reply 8 of 15
    cnocbuicnocbui Posts: 3,613member
    "others had been worried that iPhone numbers might be flat" Going from 74.5 M to 74.8 M isn't flat?
    edited January 2016
  • Reply 9 of 15
    I think there are four things driving iPhone:

    1. Longer replacement cycles as smartphones have become good enough and improvements are now largely incremental.
    2. Higher prices due to FX impacting demand
    3. Apple perhaps overestimating the % of the install base that wanted larger screen iPhone
    4. Intangible; some people just don't like the 6 series for whatever reason
    I'd like to see Apple release a flagship 4" phone and then see what percent of the install base remains on a 4S/5/5S/5C.
    cnocbuicornchipfreshmaker
  • Reply 10 of 15
    fallenjtfallenjt Posts: 4,034member
    Read this shit, Sog35. iPhone 6/6+ cannibalized iPhone 6s/6s+ my ass!
    dasanman69
  • Reply 11 of 15
    fallenjtfallenjt Posts: 4,034member
    eightzero said:
    There are still a lot of iPhones 5/5s/5c out there. Many in the hands of the second owner plus all those that don't like the larger size form factor. 
    I've reached peak iPhone with my 5s. It serves my current needs nicely. At some point in the future, I expect to need to replace it - a battery fail, or some Killer Feature(tm) I can't live without. 
    1 killer feature: iOS 11. Yup, no support for 5s or older lol.
    canukstorm
  • Reply 12 of 15
    canukstormcanukstorm Posts: 2,533member
    There are still a lot of iPhones 5/5s/5c out there. Many in the hands of the second owner plus all those that don't like the larger size form factor. 
    I think it would be smart for Apple to release a 4" phone with 4.7" specs. Have three sizes for the flagship device like they do with iPad.
    As long as that 4.7" iPhone is the 6S. If it's the iPhone 6, I don't think as many people will upgrade to an iPhone with basically 2 year old specs
  • Reply 13 of 15
    konqerror said:
    Healthy? Ha! 690.5 from 687 = increase of 1/2 of 1 percent. They're not even keeping up with inflation.
    Considering that the price points for iPhone stay the same at each yearly release, yes it is very healthy and "inflation" is irrelevant. More importantly, during the call Apple pointed out that without currency fluctuations the ASP would have been $40 dollars higher. 
  • Reply 14 of 15
    pscooter63pscooter63 Posts: 1,055member

    I'd like to see Apple release a flagship 4" phone and then see what percent of the install base remains on a 4S/5/5S/5C.
    No argument here.  My wife bought a 6s in December, and she loves it.  But even with my larger hands, I just can't seem to, well, lust for it.  (Maybe it's the case she chose...)

    When the new four-incher bows, it'll be time to retire my beloved release-day 4S.  I may still opt for a 6s, but at least it'll be great to have a form factor option that's not just "big" and "bigger".
    edited January 2016
  • Reply 15 of 15
    It'll be interesting to see what price point the iPhone 5se comes in at and how it affects average selling prices of all iPhones.
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