Wall Street firm says iPhone buyers willing to pay up for more "cool" features

Wall Street firm says iPhone buyers willing to pay up for more "cool" features
U.S. securities house Cowen & Co. says that Apple iPhone buyers are willing to pay more for a larger sized screen, a dual-camera setup and other features. Compared to the Apple iPhone 7, the iPhone 7 Plus has a larger 5.5-inch screen, two cameras on back, additional RAM and a larger battery. At $769 and up, it also sports a larger base price than the $649 starting price of the iPhone 7.

Cowen estimates that the phablet-sized iPhone 7 Plus accounted for 40% of Apple's fiscal first quarter sales of 58.5 million iPhone 7/iPhone 7 Plus units. Last year during the same exact quarter, the Apple iPhone 6s Plus made up only 23% of total iPhone sales. According to Swiss banking giant UBS, the larger percentage of phablet sales should allow Apple to report a higher average sales price of $693 for the iPhone during the fiscal first quarter. 

Wall Street analysts expect overall iPhone sales to have risen 4% year-over-year to 78 million units for the three months that ended in December. This would be the first time that such sales for the holiday quarter following a new model launch (as opposed to an "S" series release), didn't increase at a double-digit pace. Sales of the Apple iPhone 6 increased 46% year-over-year during the 2014 holiday quarter, and 29% for the Apple iPhone 5 two years before that.

For Apple, it is important that Cowan is right about the strong demand for its more feature-rich phone. That is because the rumored premium Apple iPhone 8 model is expected to be released this coming September. That device could feature a 5.5-inch OLED display that covers the entire front of the phone. The Touch ID button will reportedly be embedded under the glass. 


Apple will be releasing its fiscal first quarter earnings report on Tuesday, following the close of the stock market.
 
source: WSJ

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63 Comments

67. dmitrilp_

Posts: 330; Member since: Sep 12, 2016

"U.S. securities house Cowen & Co. says that Apple iPhone buyers are willing to pay more for a larger sized screen" look at that, it wasn't long ago that Iphone owner were complaining about large screen and for that reason the 5 SE came out. They don't know what they want.

61. gersont1000

Posts: 473; Member since: Mar 13, 2012

Should be titled "Wall Street firm says iPhone users willing to pay up for Android phone features".

29. ibend

Posts: 6747; Member since: Sep 30, 2014

still dreaming for iPhone8 this year... refusing the truth that apple will keep the old design with this year (iPhone7s) release? lol...

40. RasacL

Posts: 18; Member since: Jan 27, 2017

My thoughts exactly... Lol

23. bvalde09

Posts: 191; Member since: Nov 22, 2011

While I agree it will be cooler to have more features I dont believe there should be an increase on the price tag to the end-user. We customers are paying premium already. Why pay more while other manufacturers are already offering killers features?

20. darkkjedii

Posts: 31817; Member since: Feb 05, 2011

Big tech year coming up, Apple and Samsung have to both bring it. Apple needs to kill it with the iPhone, and Samsung needs to gain trust, and repair its image/rep.

47. Klinton

Posts: 1409; Member since: Oct 24, 2016

And what if there is no ''Ferrari'', but just usual iPhone7S (forth year same) update and nothing else this year? But tell you that 10th anniversary is in fact next year ?. And if that is just 'stock-hold' rumor? And GS8 'don't-buy-and-wait' rumor?

19. nctx77

Posts: 2540; Member since: Sep 03, 2013

My money is so ready!!! Farrari take me awaaaay!!!!

16. mixedfish

Posts: 1579; Member since: Nov 17, 2013

Phones have become way too expensive, I've stopped chasing this rabbit and have started buying last year phones at less than half price and couldn't be happier. Rather spend the money on real state of the art tech that are truly mind blowing instead of incremental mediocrity.

15. cbry0124

Posts: 1; Member since: Jan 29, 2017

Basic SD card slot

10. airoid

Posts: 135; Member since: Dec 13, 2016

Basically fruit fanboys want Galaxy iPhone. All future iPhone will have all those eventually. -ip68, oled screen, dual egde, pen, fast charge, wireless charge, multi window, iris scanner, air gesture, smart pause, pen hovering.

45. maple_mak

Posts: 953; Member since: Dec 18, 2013

(Opps! Wrong post)

8. SIGPRO

Posts: 2819; Member since: Oct 03, 2012

iphones are the past, don't know why people keep buying apple products! Hardware is old not upgradable like the MacBook's, hell even the iPhone 7 can't connect to the macbook......no you need to buy a new cable.... iPhones are way behind the market, nothing new to offer, other brands are way ahead!

12. kiko007

Posts: 7526; Member since: Feb 17, 2016

Name one phone with upgradable hardware. One. And I like how every article there's one of you (aka mofos who hop on Apple articles to hate and/or make other people uncomfortable) here screeching consistently about how "behind" something is. Newsflash: People don't care what neckbeards think is cool. Neckbeards think 4chan is cool. Neckbeards think going weeks without bathing is natural. Neckbeards think relationships with the opposite sex are a burden. Neckbeards are disgusting....and no one cares what they want/like. You (being a neckbeard) should know all this very well, so why bother pestering others anyway?

41. Alpha1

Posts: 100; Member since: Jul 06, 2016

kiko007 is a NECKBEARD. Why is he talking so badly about himself? This person doesn't even own an iPhone. He just fantasizes about it every minute of his life.

43. kiko007

Posts: 7526; Member since: Feb 17, 2016

G.O.M.D fam.

51. SIGPRO

Posts: 2819; Member since: Oct 03, 2012

You should learn to read! With upgradable i meant macbooks.....READ! You don't even have an iphone.....the iphone is like a wet dream for you......keep dreaming! Btw your nickname says it all kiko.......you should be kicked out from PA!

22. Unordinary unregistered

My old "non upgradable" iPhone 5S is still faster than over 95% Android phone models out there currently.

27. joeytaylor

Posts: 957; Member since: Feb 28, 2015

Wasn't any faster than my S5......iphone 6 wasn't any faster than my S5.....

32. kiko007

Posts: 7526; Member since: Feb 17, 2016

Don't lie.....the S5 was the worst of the S series performance wise. I have no doubt there are dozens of YouTube speed tests to back my claim.

36. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

True, if he said S6 then it would be more credible, but S5? Maybe he's running a stock Gingerbread custom ROM. LOL

39. kiko007

Posts: 7526; Member since: Feb 17, 2016

Hell yeah. The S6 had probably the best Android chip ever with the straight Exynos for all models. That chip was a beast! DAC was good too....wish they'd just go Exynos until QC can get their crap together.

48. joeytaylor

Posts: 957; Member since: Feb 28, 2015

I'm not lying......the S5 was a solid phone.....and YouTube test never proved anything .....in real world it was as good as any......compared to my brothers, his wife and a friend of mine......

63. Unordinary unregistered

I'll say it again in case you suffer from a reading disability Migh owld non upgrayduhbul eyefone five ess is stihl fastur than ohvur NINE TEE FIVE pursent androyd mahduls owt thayr kurrentlee.

64. joeytaylor

Posts: 957; Member since: Feb 28, 2015

So the S5 is in the 5%

6. batmite

Posts: 197; Member since: Jan 19, 2017

My body is ready. Shut up and take my money already, Apple.

7. BradyCrack

Posts: 835; Member since: Dec 29, 2015

Why do you sound familiar?

9. batmite

Posts: 197; Member since: Jan 19, 2017

What are you babbling about?

14. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

He's a reverse troll to make Mxy and other Apple users look bad.

21. batmite

Posts: 197; Member since: Jan 19, 2017

No I'm not. You're just salty because you've been made out to be a troll on multiple Samsung articles.

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