Apple's 'Pro' Blues: Why iPhone's Average Selling Price Is At 18-Month Low
Portfolio Pulse from Rounak Jain
Apple Inc. (AAPL) faces a decline in the average selling price of iPhones in the U.S., which has reached an 18-month low of $918 by the end of September 2023. The drop is attributed to reduced interest in the iPhone 14 Pro models, which only made up 23% of sales in the September quarter, compared to the 37% share of iPhone 13 Pro models in the same quarter of the previous year. The iPhone 15 series, featuring a USB Type-C port and other enhancements, may have shifted consumer interest and contributed to the smartphone industry's first month-on-month growth in October after a 27-month slump.
November 23, 2023 | 10:37 am
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NEUTRAL IMPACT
Apple's average selling price for iPhones has dropped, potentially impacting revenue and margins. The iPhone 14 Pro models are less popular, but the iPhone 15 series could rejuvenate sales.
The decline in the average selling price of iPhones could signal a short-term negative impact on Apple's revenue and profit margins. However, the introduction of the iPhone 15 series with new features may mitigate this impact by attracting consumers and potentially increasing the average selling price in future quarters. The confidence in this analysis is high due to the direct correlation between product mix and financial performance, but it is not at 100 because the long-term effects of the iPhone 15 series on the average selling price are yet to be seen.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100