The “Magic” of The Price Means Sale of The IPhone in The Results of Apple

Today we have appointment with numbers from Apple, a quarterly ritual, which raises the interest of those who follow the company closely. In particular, numbers are of interest to those who and the history that surround. Because one thing is how a company presents results and another what can be drawn from them.

One of the variables most closely followed in recent times is the average price of sale of the iPhone (ASP for its acronym in English). A simple division that sheds a lot of light the behavior of the product Apple star.

Which tracks gives us the average iPhone selling price

The calculation of the average sales price is quite simple. It’s a simple division, where total revenues of a product is divided by the total number of units sold. Both metric must correspond to the same quarter, obviously.

Despite its simplicity, the evolution of the price of sale (PMV) provides lots of information on the progress of a product. In the case of the iPhone, works in the following manner:

  • If the PMV increases, it means that revenues have increased their proportion with respect to the number of iPhone sold.
  • If the PMV decreases, otherwise occurs and revenues have decreased their proportion on the terminals sold.

From here, we can infer that if the PMV increases, Apple would be selling more “expensive” terminals than before. I.e., that users would be choosing models like the 7 Plus iPhone and higher storage capacities compared to the rest. And unlike something similar happens. If the PMV drops, Apple customers are preferring more affordable models like the 6s iPhone.

It may be best to express it with examples. If this variable increases, is that users have bought more iPhone 7 Plus. If it decreases, customers have opted more for iPhone 6s or the iPhone is.

Scenarios for the average price of sale of the iPhone

It is important to emphasize that we are talking about proportions, not absolute numbers. The PMV gives us information about the price, but this must be understood in conjunction with the evolution of the absolute values of income and units. Therefore, there may be four large stages with the iPhone:

  • Apple sells more units and generated more revenue than last year, resulting in a superior PMV. This would be the best scenario for the company, Since simplifying, it would have sold many iPhone 7 Plus with long storage.
  • Apple sold fewer units and generated less revenue than the previous year, but resulting in a superior PMV. Despite the fall in revenue, it is not all bad as Apple would have attracted fewer clients but would have chosen more expensive terminals.
  • Apple sells more units and generated less revenue than the previous year, by dropping the PMV. This tells us that Apple would have not convinced with its new batch of iPhone and customers would have chosen “in mass” both the iPhone and the iPhone 6s is before the iPhone 7 and 7 Plus.
  • Apple sold fewer units and generated less revenue the previous year, causing a drop of the PMV. It is the worst possible scenario, because that would mean that both the new generation iPhone and the previous proposal would have not motivated enough to consumer to renew terminal or jump from other platforms.

The evolution of the PMV from the iPhone so far

We ended up with a look at the evolution of the PMV from the iPhone in the past seven years. Decipher the movements that are generated behind the numerical result is complex, especially by the increase of available models. The top graph You can see the impact that the arrival of the iPhone had 6 and 6 Plus, the latter more expensive.

The PMV grew and consolidated above $600 until the arrival of the iPhone is in March 2016. The return of 4-inch iPhone He made enough dent in the price of the iPhone, but in return he encouraged millions of users to renew your iPhone for one of content size.

This night Apple released its financial results for the first fiscal quarter of 2017, where we can take a look at the new PMV

Several studies claim that 7 Plus iPhone has managed to surpass in popularity to his little brother of this generation. As already indicated Miguel López in his article, the main reason lies in the dual camera and portrait mode. In my experience, the portrait mode is capable of generating enough enthusiasm and interest among the public (family and friends).

7 Plus iPhone and your portrait mode approach to the public a feature that previously could only be achieved through a more or less professional camera. It is not the same result, but is approached by and for many this is sufficient. Materialize the studies and analyses, we should see a positive impact on the PMV from the iPhone. In a few hours we will leave doubts.