“Over the past few quarters, Apple has seen a dramatic drop in iPhone average selling prices (ASPs). This isn’t entirely a bad thing, nor unexpected. The main reason for the recent decline was the launch of the iPhone SE, which starts at $400,” Evan Niu writes for The Motley Fool. “That’s the lowest price point that Apple has ever sold an iPhone for directly, even after taking into account its strategy of cascading older iPhone models down to successively lower prices. The iPhone SE caters to consumers that prefer smaller phones, as well as entry-level first-time smartphone adopters in emerging markets.”

“Given the launch, a drop in ASPs makes perfect sense,” Niu writes. “The good news is that Apple expects iPhone ASPs to surge again in the fourth quarter.”

“For the record, Apple just reported iPhone ASPs of $619, which was a sequential improvement of $24,” Niu writes. “This trend is expected to continue into the holiday shopping season, according to CFO Luca Maestri… In the December quarter of 2015, iPhone ASP was $691; Apple is setting expectations that investors could enjoy a hefty jump in ASPs of around $70.”

Read more in the full article here.

MacDailyNews Take:

[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]