Apple Inc. could see a bigger-than-expected decline in the average selling price for the iPhone as consumers gravitate toward cheaper models, according to analysts.<\/p>\n
Deutsche Bank wrote that average selling prices (ASPs) for the key product category could drop between 4% and 6% in fiscal 2020, thanks to both\u00a0the cheaper price of the iPhone 11\u00a0— which starts at $699, compared with last year\u2019s iPhone XR, which started at $749 — along with reduced prices for previous generations like the iPhone 8 and 8 Plus. Analyst Jeriel Ong estimated that these models could together account for 40% of iPhone unit sales over the next 12 months.<\/p>\n
Ong noted that cheaper prices could yield higher unit sales, although \u201cwe do not yet have a strong enough sense of how pricing, in conjunction with the new feature sets of the new iPhones, will impact overall unit demand.\u201d<\/p>\n
He added that he was unsure whether the decline in ASPs \u201ccan be adequately offset by a commensurate rise y\/y in units.\u201d Deutsche Bank has a hold rating and $210 price target on Apple shares.<\/p>\n
According to a Bloomberg MODL estimate, Apple is expected to ship 182.7 million iPhones over 2020, which would represent a year-over-year decline of about 1.1%. The average selling price is expected to be $759.85, a year-over-year decline of 2.3%.<\/p>\n
In 2018, the iPhone accounted for more than 60% of Apple\u2019s total revenue, according to data compiled by Bloomberg.<\/p>\n
Piper Jaffray on Monday wrote that a survey of iPhone owners suggested \u201climited excitement\u201d for the just-launched models, with the most interest seen in the lower-priced versions. Given \u201cthe promise of 5G devices on the horizon,\u201d users upgrading their iPhones over the coming 12 months \u201care less likely to buy a higher-end model,\u201d which will mean a lower ASP for iPhones this year compared with last year, analyst Michael Olson wrote.<\/p>\n
Also on Monday, Rosenblatt Securities wrote that ASP declines were \u201cthe main concern for iPhone sales this year.\u201d<\/p>\n
Shares of Apple fell 0.2% on Tuesday, compared with a 0.8% decline in the S&P 500.<\/p>\n
Apple Inc. could see a bigger-than-expected decline in the average selling price for the iPhone as consumers gravitate toward cheaper models, according to analysts.<\/p>\n","protected":false},"author":341034,"featured_media":319609,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17934],"tags":[605,1125],"class_list":["post-321085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smartphones","tag-apple","tag-iphone"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/321085"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=321085"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/321085\/revisions"}],"predecessor-version":[{"id":321087,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/321085\/revisions\/321087"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/319609"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=321085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=321085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=321085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}