This Has Been The Average Selling Price of IPhone

We talked yesterday about the “magic” that hides behind a metric as the average price of sale of the iPhone (PMV) and today We already know one new data. Thanks to the presentation of the latest financial results, we can get a better idea of what’s happening with the iPhone and its trajectory. A product that, judging by the data, has rope in the market for a while. 

What has happened with the PMV from the iPhone?

This is the path of the PMV from the iPhone in the past seven years. In the first part of the graph, we see how his progress was more or less predictable. A new generation of iPhone It catapultaba the average price and then fall gradually to the next. That is more or less up to the iPhone 5 (remember that the iPhone 4s was the first to leave in October, not June).

From the iPhone 5s, we have seen how Apple began to unfold its line of smartphones to deal with a user base increasingly heterogeneous. But the acid test came with the iPhone 6, which for the first time brought two flavors in the form of different sizes: 4.7 and 5.5 inch.

As expected, the iPhone 7 Plus has pushed the average price of the terminal up, something that never ceases to surprise us

These terminals returned to the PMV to values above 600 dollars, showing that, indeed, the iPhone user base not was before. Was not sufficient a single new terminal each generation, with the of the above at a more affordable price. Users asked for new things to their smartphones and Apple was not offering it.

With the iPhone 6-6s, the company was able to take advantage of the pull of the large diagonals that others such as Samsung have long exploited. However, a user group was left behind: lovers of 4 inches. The introduction of the iPhone it was assumed the return to previous levels (a kind of “tunnel”), pushing the PMV under $600.

But this last quarter has again sent the PMV up to almost $700. In particular, $695, 4 more than the previous year. Would you tell us that the future of the iPhone?

Four very different iPhone together

As we said before, the iPhone user base has changed a lot in recent years. There is no single “average user” and thus It is necessary to create a terminal that best suits What to expect. Currently, we have these lines of terminals with its set of benefits and impacts in the PMV:

  • iPhone 7 Plus: highlights the dual camera, screen and battery. Especially the portrait, which is clear mode that It has been a great claim for those who appreciate having the best possible photos and it has pushed the PMV upwards. Here we should also take into account the model Jet Black, which is only sold in 128 GB and 256 GB capacities.
  • iPhone 7: for those who want the latest model, not so much valued the camera but a content size. The ascent to the 32GB has surely been enough for many customers, and they have decided to stay there. Perhaps a little offset by the Jet Black effect.
  • iPhone is: for those who want a powerful and Compact terminal or they want an iPhone but they are more sensitive to price of this. Important impact on the second hand market. Its effect to push the PMV down is very powerful, since the base price is $ 399.
  • iPhone 6s and 6s Plus: for those who are looking for an intermediate or large size screen, but are more sensitive to price. Very interesting storage base is 32 GB. The biggest competitors of the iPhone are 7-7 Plus.

With all this in mind, especially the iPhone is and more affordable price point, no longer surprising that the PMV from the iPhone not only not declined but It has risen slightly. The effect of the iPhone 7 Plus left notice, countering the effect down the other iPhone.

This does nothing but reinforce the strategy of Apple with the iPhone. In a market that is a commodity (in which customers see the product as an undifferentiated commodity) for years, the only differentiation possible is up. Without losing sight of the middle part of the market, It has paint that Apple will continue betting on differentiating its model Plus features like the camera.

What will happen this year, we will see a new iPhone is in March and three new models in September? As always, it will be interesting to see what will bring us the next generation of the iPhone.