“On a re-stated basis, without the extra revenue from accessories, the iPhone ‘ASP’ (Average Selling Price) from a year ago becomes $646 (which, again, is not what is reflected in the graph). This is almost exactly the same as the current quarter. The iPhone "ASP erosion" therefore goes from 2.6% to only 0.7%,” Horace Dediu writes for Asymco. “Similarly, the iPad shown at $467 in the latest quarter does not drop from $593 last year but from $568. Its ASP erosion becomes 18% rather than 21%.”
“Interesting resilience with the iPhone and slightly better support for the iPad price,” Dediu writes. “What does it mean?”
Dediu writes, “The clue comes from the fact that [with iPhone, as opposed to iPad] the consumer is not the only buyer. It's operators who buy and re-price the product. They are hiring the product to sell broadband and the newest variant is still the best hire to do that job. This observation is crucial to understanding the growth dynamics of the iPhone and consequently, of Apple itself.”
Read more in the full article – highly recommended – here.
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