Will Apple’s improved-but-lower-priced iPhone SE bring the overall iPhone ASP down?

“Of course, we have to consider the action at the top of the range. The new iPhone X 64 was introduced with a $30 increase over the 7 Plus 256,” Horace Dediu writes for Asymco. “However the 8 Plus 256 is priced $20 lower than its predecessor. This is something of a wash in terms of impact on average price.”

“In addition, the iPhone X 256 is a considerable $159 jump from the 64GB. Gaps used to be $100 between memory bands. This new increased gap is because the memory bands are now 64/256 vs. 32/128/256 in the previous generation. The memory tiers are now two and they are quite far apart (4x),” Dediu writes. “This places the top of the range at a new high, as expected, but it’s a higher high. We see an $180 increase from the previous high.”

“Regardless of this surge in the top, the percent of units sold at that highest point is not likely to be very significant. X at 256Gb is a great product for enthusiasts but I suspect most people who want to experience the X will comfortably settle for the iPhone X 64,” Dediu writes. “The interesting action is in the middle of the pack. The meat of the increase in product mix is right in the $650 to $850 range where Apple went from 4 products to 6. And they are all highly competitive 7 and 8 iPhones… Here, I believe, is where the sales action will be concentrated. I still predict that, apart from a transient launch period burst, the ASP will stick to its 10-year trajectory of mild increases (keeping with inflation.) In other words, the iPhone will cost about $650 for another year. This season the iPhones X will be door busters but over the whole year customers will walk out with 7 and 8 iPhones. The big year of the X will be next year, after the X+1 ships.”

Read more in the full article here.

MacDailyNews Take: What do you think, general public-wise, regarding the iPhone mix? Will the majority choose “traditional” iPhones (7/Plus, 8/Plus) with smaller contingents at the top (X) and bottom (SE) of the iPhone lines? (We’d have to imagine the 32GB iPhone SE will be mighty popular in developing countries. That device is a tremendous value!)

Also, if you’re planning on getting an iPhone X (eventually; supply and demand is going to be a royal bitch with this one), will you be opting for the 64GB or 256GB model?


  1. “MacDailyNews (We’d have to imagine the 32GB iPhone SE will be mighty popular in developing countries.”

    AmeriKa is becoming a third world communist country. So da, the SE will be popular in AmeriKa.

  2. I wish apple would make an SE with the fastest processor and best camera possible. I’d be willing to pay a premium price for a small phone with premium specs. I hate that they’ve shifted to “bigger is better”. I love the camera on my iPhone 7 plus but I hate the size.

  3. To me, the answer seems simple: Make a high-quality, high value oled device like the iPhone X that is approximately the same size as the iPhone SE. Maybe they would have to charge slightly less for it because there is an expectation nowadays that larger phones are “worth” more, but they wouldn’t substantially undercut the X in price. Heck, I’d pay more. I WANT a high-value, full-featured iPhone. It frustrates me that they are only available to giants and people who are able to keep both hands free at all times.

    My next phone will be: an iPhone X mini. (No, that’s pie-in-the sky thinking…maybe a non-Apple product?)

  4. I have a 128 6S right now. I can’t get a 64gig phone ever again. So, I guess that pushes me up to the 256 X, to answer your question MDN. I’m not upset. It’s only money. They’ll print more… And I’ll buy more iPhones… and iPads… and AppleTV’s… and AppleWatches. Not sure if I’ll buy another Mac, though. I don’t think I really need a desktop since I got my 12.9 iPad Pro.

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