What you need to know
- iPhone ASP is an important factor for Apple.
- The popularity of iPhone 11 over iPhone 11 Pro might drive ASP south.
- iPhone XR and iPhone 8 live on, further reducing iPhone ASP.
With iPhone 11 and iPhone 11 Pro now available analysts are starting to wonder how sales numbers will affect Apple's iPhone average selling price (ASP). According to analysts at Deutsche Bank, ASP might actually go down this year.
The bank issued a note to investors warning that iPhone ASP could fall as much as 6% during fiscal year 2020, with cheaper iPhones making up for as much as 40% of sales. Interestingly that figure doesn't appear to include iPhone XR either. Apple chose to keep iPhone 8, iPhone 8 Plus, and iPhone XR around when introducing the 2019 iPhone lineup. All of them are considerably less costly than Apple's flagship models and will absolutely appeal to the budget conscious buyer.
Analyst Horace Dediu recently shared a graph showing how iPhone ASP has performed over the years. It's notable that it has remained relatively consistent throughout, sitting at around the $650 mark.
While the belief by some is that Apple will be able to make up what it loses in ASP by selling additional volume, not everyone agrees. Analyst Jeriel Ong isn't convinced at all.
Ong noted that cheaper prices could yield higher unit sales, although "we do not yet have a strong enough sense of how pricing, in conjunction with the new feature sets of the new iPhones, will impact overall unit demand." He added that he was unsure whether the decline in ASPs "can be adequately offset by a commensurate rise y/y in units." Deutsche Bank has a hold rating and $210 price target on Apple shares.
Apple no longer shares sales numbers for iPhone, but initial estimates by analysts have been positive. We're still less than a week into the iPhone 11 lifecycle and we'll surely hear more sales estimates in due course.
We may earn a commission for purchases using our links. Learn more.
Plan your day with Hour Blocks and its amazing iOS 14 Home screen widgets
Planning your day is no fun but sometimes you find an app that goes some way to making it less boring. Hour Blocks does a decent job and it looks lovely, too.
Scribble Together gets the coolest iOS 14 App Clip we've seen so far
Scribble Together has released its new App Clip for Scribble Together, which will allow users to collaborate on a Scribble Together whiteboard even if they don't have the app.
TikTok is being banned in the U.S. from Sunday, September 20
The U.S. Department of Commerce will ban TikTok and WeChat from U.S app stores from Sunday.
The most reliable iPhone 11 cases front to back
Protecting your iPhone doesn't have to be an investment in itself. Read about these suggestions that cover everything from the most rugged and durable, to cases that rely on magnetic technology for tight seals that protect screens from more than just smudges.