“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!”