“If Apple makes some of the changes in its iPhone lineup many expect, it could boost its average selling price and total phone revenues substantially if shipments grow 1.4%, according to Raymond James,” David Marino-Nachison writes for Barron’s. “According to a Friday note, based on assumptions about Apple’s lineup and the price that would go with it: ‘We view Apple’s pricing strategy to be aimed at maximizing operating profit against the backdrop of somewhat mature iPhone unit demand.'”
This is no longer about maximizing unit sales, since given iPhone penetration rates, we don’t think there’s much Apple could do at this point to substantially grow iPhone units. What they can do is to maximize the profit dollars they extract from each phone, by offering phones at a wider range of price points, and by convincing customers to purchase the most expensive iPhone they can afford. — Raymond James
“In a chart, the analysts illustrated how shipments, average selling price and revenue could change if Apple retires some phones and adds others,” Marino-Nachison writes. “(They expect the current X will be sold down, three phones will be added, and the current 7 or 8 could come out of the lineup.)”
Read more and see the chart in the full article here.
MacDailyNews Take: Raymond James analysts call the next-gen the “iPhone Xs.” As in: Excess (to the general public, who call the current iPhone flagship the “Ex,” as opposed to the actual name “10”). Hopefully, Apple has retired the stupid and self-defeating “s” naming scheme forever with the jump from 7 to 8, but we do love the sound of “iPhone Excess” almost as much as we love “iPhone Plus Excess!”
David almost got it right.
In my opinion what Apple is going to do this September is introduce an iPhone 9 and an iPhone 9 Plus )both LED in traditional form factor, plus an iPhone X Plus.
The iPhone X Plus will be offered at $999 and $1149. The iPhone X (this year’s model) will be offered at $899 and $1049.
On the surface this looks like a price reduction for the iPhone X lineup. In reality, as traditional LED iPhones are flushed from the iPhone lineup ASP’s will increase by about $150.
For sure Apple is NOT going to introduce a 6.1″ iPhone 9 Plus. That would defeat the differentiator of the iPhone X Plus. Using the iPhone 8 Plus dimensions the iPhone X Plus will house an OLED screen measuring about 6.4″ on the diagonal.
The important thing, as David points out, is that over the course of 3 years iPhone ASPs are going to expand, WITHOUT FURTHER PRICE INCREASES.
This strategy will result in the iPhone X selling for $599 in 3 years. And as the price of the iPhone X comes down (YoY) overall unit sales will expand, as lower priced OLED iPhones fill the iPhone line up and captures lower price tier consumers.
Based on what is rumored to be coming out, there is no way they will introduce a 9/9 Plus, that need will be satisfied by the 6.1″ LCD and “X Plus” models, at best they will keep the 8 and 8 Plus models. The future is all screen and Face ID, no more stupid home button! People wanting a smaller iPhone than the 6.1″ (though it’ll be only marginally bigger than the current X), can get the legacy models or an SE. Apple doesn’t have OLED supply to make a new “X Plus” and continue the X, thus the ramp down we’ve heard about. Your opinion is baseless.
I will not purchase any Apple product with a notch.
Yet you parade around here with a visible notch in your brain. You’re a sad fudgeknuckled wombat and a disgrace to anyone with the name Fred. Politely fill your own notch with cement and give yourself and uppercut for being so much like a goose.
You get so upset about the least things. Why are you so perpetually annoyed? Can you not stand people who don’t think like you? Are you a professional bigot?
But Fred still uses Samsung, so …
I use your sister, too.
So when do you graduate to the big school then? 🤔
Oh Fred so quick to criticise other’s language yet sinking to this childish and deeply chauvinistic contribution, and its hardly your first. It’s not about thinking different that’s the issue it’s more about your apparent inability to think at all that’s the problem.
Your anguished and futile attempt to appear intelligent and reasonable is noted.
The iPhone X isn’t meant for dullards, so that’s a good idea.
Really? Please provide the link from Apple that corroborates your ludicrous statement. Seriously, you’re a sad and pathetic fanboy suffering terminal buyer’s remorse for purchasing iPhone X. Sucks to be you.
Is the next iPhone supposed to generate another “supercycle?” Oh, wait…
We should be thankful Apple is able to sell any iPhones at all in such a saturated smartphone market where consumers are begging for $150 Android smartphones as their main devices. One would think Apple is breaking the backs of some smartphone manufacturers but they just keep coming back for more punishment. I’m not sure what they’re gaining from continuing their smartphone businesses but maybe they hope to get lucky when a rival smartphone company makes a mistake.
Does anyone remember that Apple used to make powerful computers? My 6S will fill my communication needs for quite a while. High end photo and video are my game. Not toys.
My iMac Pro seems to handle high end photo and video stuff just fine.
Oooo. High end! Can I get your autograph? You are obviously a very technical person with major skills.