The remarkable growth of the iPhone X

This article may contain personal views and opinion from the author.
The remarkable growth of the iPhone X
Apple has just had its best June quarter ever and it is remarkable how the company continues raking in massive revenues and maintain record-high profit margins while many other smartphone makers are struggling to maintain healthy profits.

To put things into perspective, while iPhone generated a revenue of $29.9 billion in the June quarter, the closest competitor Samsung reported revenue of $21.4 billion, but a profit of merely $2.38 billion, which accounts for a margin of around 11%, while Apple operates at an average margin of around 38.5%. Using the latest IDC estimates, this puts the average selling price of a Samsung phone in this past quarter at exactly $300 apiece, while Apple reported more than twice that number with an average selling price for an iPhone at $724!

The key to that growth at Apple has been one product that many people expected to fail: the $1,000 iPhone X.

First, let's take a closer look to see whether it was really the iPhone X that propelled this incredible growth for Apple.


Looking at the historic average selling price for iPhones, one can see clearly that the ASP hovered around $600 for years, with an occasional spike here and there. But look what happens to this number when the iPhone X came to be: in the same quarter when Apple unveiled the X we are witnessing an instant 20% year-over-year increase in ASP. In the first quarter of availability, ASP spiked up to nearly $800. What's more remarkable, however, is that Apple is able to maintain this 20% growth in ASP for three consecutive quarters and now it is about to enter its traditionally strong September quarter when new iPhones are coming out.


Tim Cook also once again dispelled any doubts about the iPhone X performance in the conference call saying that the iPhone X "has been the top selling iPhone since launch". Three months ago, Cook was even more specific, saying that the iPhone X outsold other iPhones every single week since its launch in December.

In fact, the $1,000 iPhone not only boosted the ASP, but was also a key part in double-digit iPhone unit growth in several markets including the U.S., Canada, Germany, Switzerland, Mexico, Hong Kong, Russia, the Middle East and Africa.

So yes, it's official: the iPhone X is a big success. It's also big money for Apple. And despite a smartphone market that might not be growing in leaps and bounds as it used to, Apple has found a way to keep moving forward and deliver amazing, sustained growth once again: charge $1,000 for a phone. Consumers don't seem to mind.

FEATURED VIDEO

28 Comments

1. Phullofphil

Posts: 1831; Member since: Feb 10, 2009

I like mine and I will never go back. I am used to having this style and can’t wait for the pluss

4. BullaBoss

Posts: 141; Member since: Jul 17, 2018

I got to play with an iPhone X finally and it's a nice device. Design is up there with s9 and the display is stunning. I'll be watching the 2018 iPhones as well as the S10. Finally gonna spend flagships money on a phone.

10. GreenMan

Posts: 2698; Member since: Nov 09, 2015

iPhone X isn't special. A Mercedes S Class isn't all that far behind The Rolls Royce Phantom but The Mercedes lack one IMPORTANT thing: The Spirit of Ecstasy. And while The Google Pixel 2 can and has crushed and destroyed The iPhone X in ALL speed tests I came across on YouTube; it severely lacks one thing: The Apple Logo. Rich people would pay through their noses to be in possession of a Product that make headlines with the phrase 'most expensive ever'. Go figure or go fish. G'Day!

21. Phullofphil

Posts: 1831; Member since: Feb 10, 2009

In your opinions. Other wise what you say as usual is just anti apple. Your right though. For you and your needs what you said is true.

23. aegislash

Posts: 1531; Member since: Jan 27, 2015

Never understood why people feel the need to say 'in your opinion'...when clearly...it's his opinion.

25. Trex95

Posts: 2383; Member since: Mar 03, 2013

Pixel hahah.

26. Venom

Posts: 3824; Member since: Dec 14, 2017

I honestly think the Pixel is a better phone than the iPhone X. I just don't see what's so captivating about the iPhone X. The screen size alone is a turn off and it doesn't have TouchID.

2. mrsmith5280

Posts: 30; Member since: Jul 23, 2018

Yeah Im getting the plus as well!

3. blkatfirstsight

Posts: 39; Member since: Mar 05, 2018

I opted to go with the 8 Plus only because I felt this was a beta phone and apparently several others felt the same way from what I see and heard. I could have sworn that the X sales weren't that great initially but maybe I read that wrong. I am however excited about the X Plus(or whatever its going to be called)

6. toukale

Posts: 669; Member since: Jun 10, 2015

It's because some analyst took their cues from some Apple Suppliers. Because such suppliers had a hard time, they took that as the iPhone X not selling well is the caused. It's always the iPhone's fault whenever a supplier is not doing well. Somehow it never dawn on them that Apple likes to buy in bulk a ton of parts for launch to make sure they do not have issues and then cut back once the holiday season is over. Don't you remember reading the yearly articles around Dec/January about how iPhones struggles because Apple cut their supply demands. Its the yearly recycle articles that every tech sites/news channel recite every year. It never fail, I am looking forward to those same recycled articles at the same time again.

19. Kloak

Posts: 82; Member since: May 27, 2018

They said it wasn't selling as expected, Apple launch 2 iPhones each year, with the X was 3, but it's not precisely selling more phones per year (just a minimal increase), so basically they have to be selling less that the iPhones 7 for example, unless one of the iPhones 8 are not selling at all, the X is not selling more than previous models, the X outsold the other iPhones, they're not saying how many iPhones are actually selling for each specific model, but they have to be selling less than previous models or there would have be a big increase of iPhones shipped.

5. toukale

Posts: 669; Member since: Jun 10, 2015

Member when some folks kept repeating that nonsense (fake news) about how the iPhone X was a flop. Yeah, I member...

14. c.m.s

Posts: 239; Member since: Dec 10, 2017

That will happen again... Next time an analyst like Nikkei hear from a "source in the industry", in other words someone who's mother work at a component factory that has a bit longer coffee breaks than usual which must mean that the production of iPhones have been cut by 50%... I can't understand way media still report about their predictions that has been way off time and time again.

7. AmashAziz

Posts: 2934; Member since: Jun 30, 2014

I want these 5 changes at the very least in the 2019 iPhones: No notch FPS Fixing of issues caused by gestures Larger battery by atleast 500mAh More durable construction

12. Y.S.L..

Posts: 232; Member since: Jul 03, 2018

I want the 16.9 screen back Don't like this ugly POS tall screen And also 4gb Ram

15. T12RYK

Posts: 849; Member since: Jun 10, 2011

Would you also like a Unicorn?

17. AmashAziz

Posts: 2934; Member since: Jun 30, 2014

No, but a Pegasus would be awesome.....!!

8. MarmiteTheDog

Posts: 192; Member since: Jul 31, 2017

Not a huge surprise when you look at their insulting profit margin on mediocre tech.

9. MarvzIsFallen

Posts: 646; Member since: Aug 11, 2017

So much hate for a mediocre tech. But there were people like me who keeps buying  products. It’s ecosystem is a top notch. I have an iphone X, ipad pro 10.5, apple watch series 3, airpods,  tv, and macbook pro with TB. Their continuity is the best feat for me. Now looking forward for iphone x plus this fall, as I am used to large screen (coming from 7+). Face ID is awesome and the new gestures. Great job , way to go for being a trillion dollar company.

13. Valdomero

Posts: 704; Member since: Nov 13, 2012

My gawd, you must be a contractor or something... someone with base salary can't afford even the iPhone 6

20. Papa_Ji

Posts: 878; Member since: Jun 27, 2016

Man this summer..... You should replace all your 10Kg of rotten fruit garbage.... with a Galaxy NOTE 9 and Galaxy Watch. A Galaxy Note can do much more then all your 10 kg old toys. Come out of rocks and experience the ENDLESS GALAXY. ...........7+ is not a large screen phone it's a small screen in massive Frame.

11. JMartin22

Posts: 2389; Member since: Apr 30, 2013

I like the design of the iPhone X, but just for multimedia purposes (playing videos and emulated games) I really don’t appreciate the notch cutting into the contents of the display. That’s my only real gripe with the iPhone X right now. Everything else about it is top tier quality. Another minor gripe is the software delay and freezing display with the gestures.

16. T12RYK

Posts: 849; Member since: Jun 10, 2011

What I was about to say. The notch isn't an issue when using the phone in portrait mode, but when watching videos full screen in landscape, the notch does really get annoying.

18. pali2704

Posts: 15; Member since: Feb 11, 2015

Apple knows best. That's why the 10 will be discontinued, because it sells too damn good. In 2019, I expect to read here an article and find out that everybody has an iphone 11 at just 2000$. Jokes aside, I see more and more flagships from other firms aswell: Huawei, Oneplus, LG, not to mention Samsung.

22. srgonu

Posts: 566; Member since: Feb 13, 2012

Expected this article from Victor. Of course iPhone X will be top selling iPhone (with other iPhones having a 4 year old design) and mac book pro 2018 will be top selling mac book in the next financial year. :)

24. aegislash

Posts: 1531; Member since: Jan 27, 2015

The iPhone X has been an absolute pleasure to use for the past (nearly) nine months now...holy sh*t time flies. iPhone XS Plus/XI Plus/whatever it ends up being called, will be a day one purchase. I absolutely love the size of my Note8's display, so it'll be great to have the same sleek sexy style as the X, but with a much larger screen.

27. meanestgenius

Posts: 22503; Member since: May 28, 2014

I’ll be getting that 6.5 inch iPhone X Plus. I’ve thoroughly enjoyed using my 8 Plus. I went with that over the X only because of the better battery life the 8 Plus has over the X. I’m eagerly anticipating the X Plus.

28. NinoH

Posts: 133; Member since: Feb 09, 2018

My iphone X is the best phone i ever had period. It coats me a fortune but still I have no regrets. Unlike my “old” S7 edge and then S8 which were hot as fire when using GPS and not to forget that nasty camera bug on S8 which was barely usable for taking pictures. Sort Sammy never again.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.