“Without question, the catalyst behind Apple’s record-breaking earnings was the iPhone,” Yoni Heisler writes for Network World. “For the quarter gone by, Apple sold 74.5 million iPhones, an all-time quarterly record.”
“What’s interesting about Apple’s iPhone sales for the quarter, aside from the incredible volume, is that the average selling price (ASP) of the iPhone was way up from the same quarter a year-ago,” Heisler writes. “During the 2014 holiday quarter, the ASP of the iPhone was $687. During the 2013 holiday quarter, the ASP of the iPhone was $637.”
“It’s overwhelmingly clear that Apple’s more expensive iPhone models – the 6 and the 6 Plus – were key factors in Apple’s record breaking quarter. And yet, armchair quarterbacks with no semblance of business sense or awareness of how Apple operates have argued for years on end that Apple absolutely needs to come out with a low cost iPhone. For these shortsighted pundits and analysts, the blind pursuit of meaningless marketshare is bizarrely more important than actual profits.,” Heisler writes. “Apple’s business model is simple. The company sells premium products at premium prices.”
Read more in the full article here.
Newsflash: Apple sells premium products at premium prices to premium customers – October 23, 2012