Increased adoption of iPhone 6 Plus in U.S., China set to boost Apple Inc profit margins
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.
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.
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.
Comments
But but but... Android... market share... winning...
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?
When will their earnings be reported?
"...that demand for this device outstripped demand by a wide margin"
Doesn't anybody proofread anymore?
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]
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.
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
Probably just me but;
who the hell is "AppLovin"?
When will their earnings be reported?
Nobody knows.
It's a secret.
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.
Apple reports earnings the second Tuesday of next week.
Sorry, I was attempting humor related to BobSchlob comment that the earnings report was a secret.
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.
Is that on February 30th?
No silly, the only month that has 2 Tuesdays in a week is Octember