Report calculates that Apple subtly raised the average iPhone price by 20% for fiscal 2019

Report calculates that Apple subtly raised the average iPhone price by 20% for fiscal 2019
Loup Ventures analysts Gene Munster and Will Thompson have weighed in on the new Apple iPhone models unveiled last Tuesday. If you're an Apple investor, the news is good. If you're an iPhone buyer, not so much. Here's why. With the average price of the nine new variants calculated to be above the fiscal 2018 average selling price of $745, the chances are pretty good that for fiscal 2019, the ASP for the iPhone will be higher. Considering that professional investors and analysts look at the iPhone's ASP to help them make investment decisions, this bodes well for Apple's shares next year.

According to Munster and Thompson's calculations, the Apple iPhone is now available in a price range of $449 to $1,449 for an unweighted average price of $765. And that figure is 20% higher than last year's unweighted average iPhone price of $636 (with a range of $349 to $1,149). In other words, Apple has subtly raised the price of the iPhone. The analysts note in their report that "Once again, Apple has shown their mastery of pricing tiers."

Munster and Thompson expect that for Apple's fiscal 2019, which starts next month, the lower priced Apple iPhone XR (which doesn't launch until October 26th) will grab 38% of iPhone sales with the highest priced iPhone XS Max and the iPhone XS responsible for 12% and 9% of iPhone revenue respectively. Overall, they call for the three 2018 models to account for 59% of total iPhone sales in fiscal 2019, up from the 54% achieved by the three 2017 phones for fiscal 2018.

The analysts have not changed their forecast of total iPhone sales for fiscal 2019 since the unveiling. They still expect Apple to ring up 225 million units, which puts them above Wall Street consensus of 219 million. They have raised the number of Apple Watches they see sold during the fiscal year, from 25 million to 31 million. And they note that Apple is "building an insurmountable lead in the wearables space" because of two factors. One, WatchKit makes it easy for developers to write apps for the Apple Watch. And two, the company continues to update the hardware aggressively.


source: LoupVentures

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49 Comments

1. baldilocks

Posts: 1540; Member since: Dec 14, 2008

Nothing subtle about it...

31. Atechguy0

Posts: 918; Member since: Aug 03, 2018

Is this something to be proud of? Apple knowning and purposely rasied their prices even higher. It's not like customers that bought into Apple can then say I want to go with a cheaper iPhone that has roughly the same specs. It's not like iOS users can choose another OEM that makes iOS devices that are compatible with Apples platform. Apple knows this as well. Also look at their XR which the only thing that is half decent about that iPhone is the A12 SoC. The rest is equivalent to an iPhone 7 or 8. Which an iPhone 7 goes for $449 from, and an iPhone 8 goes for $599. The display on the XR is so cheap that it's only HD+ resolution with the same low pixel density of 326 dpi. So not worth their pricing.

38. vincelongman

Posts: 5730; Member since: Feb 10, 2013

Pretty disappointed with the A12 Not as big GPU improvement as expected, but the AI/ML/DL improvement is huge Their version of HDR+ should a HUGE upgrade over the iPhone 8 But yea other than that not much incentive for iPhone 8 owners

45. techbuttcheex

Posts: 204; Member since: Jul 25, 2015

...And while they gouge US consumers, the Chinese factory workers live in extreme poverty and kill themselves. Lol.

2. Nine1Sickness

Posts: 896; Member since: Jan 30, 2011

This is why they discontinued the X. Had they lowered the price of the X instead of discontinuing it, people would opt for the X over the new Xs/Xr.

3. bucky

Posts: 3791; Member since: Sep 30, 2009

If it wasn’t for the crazy resale, I wouldn’t own an iPhone anymore. Keep going Apple, I make a solid income but it’s at that stupid line now.

5. piyath

Posts: 2445; Member since: Mar 23, 2012

Nah... That line is expanding every year because other OEMs also raising their prices. Samsung and Oneplus are clear examples for that. Prices of phones made for North American markets are increasing continuously and Apple has to keep up with that.

18. arsenaljimenez

Posts: 198; Member since: May 03, 2012

Apple has to keep up with it? They're the ones leading the pack

24. darkkjedii

Posts: 31337; Member since: Feb 05, 2011

Another dumb post. They’re not keeping up, they’re overpricing and ripping off.

4. piyath

Posts: 2445; Member since: Mar 23, 2012

Apple is the BEST! They know how to make best products and how to steal money from their customers' pockets. Can't complain, can you?

12. rouyal

Posts: 1583; Member since: Jan 05, 2018

You and me have a different definition of stealing.

42. Chris_ABN

Posts: 194; Member since: May 16, 2018

More like raping people's pockets.

15. cmdacos

Posts: 4272; Member since: Nov 01, 2016

I don't have to complain about compromises because I don't buy iPhones

35. bucky

Posts: 3791; Member since: Sep 30, 2009

You OS is compromised by TW, security, brutal resale and updates. If I spent money on that, I’d try to hide it as well... Both have their cons...

19. darkkjedii

Posts: 31337; Member since: Feb 05, 2011

You’re a certified idiot dude. I don’t know if you’re doing this just for attention, which means you have no life, but that’s sad.

36. AmashAziz

Posts: 2934; Member since: Jun 30, 2014

He works at Apple. As a madman.

40. darkkjedii

Posts: 31337; Member since: Feb 05, 2011

Lol. He’s a genius.

6. scarface21173

Posts: 700; Member since: Aug 17, 2014

They need to keep the same revenue coming in, selling less phones means inflating prices. Bad news for the consumer.

7. Kibzara

Posts: 124; Member since: Feb 24, 2016

the strongest iPhone feature...

8. srgonu

Posts: 558; Member since: Feb 13, 2012

Imessage

9. Kibzara

Posts: 124; Member since: Feb 24, 2016

nice trollin'

10. cocoy

Posts: 464; Member since: Oct 30, 2015

No. It's the price. That's the strongest feature, lol.

11. Kibzara

Posts: 124; Member since: Feb 24, 2016

my point, exactly...

21. darkkjedii

Posts: 31337; Member since: Feb 05, 2011

The strongest feature without a doubt, is split screen multitasking followed by picture in picture, and Pencil support. Themes, the app drawer, and free placed widgets are strong iPhone features too. I also like the multi item clipboard, and floating windows.........oh wait, I thought you said Note 9.

22. dnomadic

Posts: 426; Member since: Feb 20, 2015

Love my Note 9... It may be leaving for the Pixel XL (if the software compensates for the look), but I have been thoroughly pleased.

23. darkkjedii

Posts: 31337; Member since: Feb 05, 2011

I’ll on part with mine for another Note, nothing else gets me. S9 Plus maybe.

25. Venom

Posts: 3737; Member since: Dec 14, 2017

I'm still rocking the S9+ and I like it. The Note 9 looks great, but I don't think $1000 price tag is going to cut it. I'm waiting to see what the next Pixel offers.

39. darkkjedii

Posts: 31337; Member since: Feb 05, 2011

The S9 Plus is a beast yo. I just have to have my S-Pen.

13. rouyal

Posts: 1583; Member since: Jan 05, 2018

Quality doesn’t come cheap, no matter who is making phones. Apple is just more consistent

16. Donone41

Posts: 246; Member since: Dec 17, 2014

Yet you own a moto effing G. Dude stop the BS! We all know you're not buying a damn thing over $200. Leave that speech to the spenders. Damn bunjavi always bragging about something they can't afford.

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