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Apple widens the ASP gap: $687 for an iPhone, $254 for an Android

By Daniel Petrov

Updated: Feb 02, 2015, 9:26 AM

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Apple widens the ASP gap: $687 for an iPhone, $254 for an Android

Apple made about $18 billion last quarter, toppling the largest three-month corporate profit of $16 billion that belonged to the Russian juggernaut Gazprom. How did Apple do it? Well, the iPhone line's average selling price (ASP) was $687 for the quarter, marking a $50 increase from last year, due to the fact that Apple now has the iPhone 6 Plus, whose starting price is a Benjamin higher than the breadwinner.

The average price to make and sell one, however, is about $220, even with the thorough redesign that the iPhones received, so roughly 200% profit on a handset, and Apple sold a record amount, too. As a result, now Apple has about $178 billion in cash to play with, and those can certainly buy you a lot of innovation yet to happen.

What about Android, though? Well, Samsung made about $5 billion last quarter, which is not shabby by any measure, but let's not forget that it sells plenty of other things, too. In fact, Android devices' ASP is pegged at mere $254, according to research firm ABI, while an Android flagship often costs more to produce than an iPhone. That's about a hundred dollars less than the average selling price for an Android handset last year.

It's not hard to see then why Apple just shattered all net profit records, while Android manufacturers are usually just getting by. With the onslaught of Chinese manufacturers last year, which sell flagship specs for midrange prices, that ASP gap is only bound to get wider, it seems.

source: WSJ

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Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.