And this generates a drop in the ASP for the iPhone

Apr 25, 2019 08:51 GMT  ·  By

iPhone XR, which is the most affordable iPhone launched by Apple in 2018, is also the best-selling model in the United States, according to new data published by CIRP.

According to second quarter data, iPhone XR accounted for 38% of all iPhones sold in the United States. This is both good news and bad news for Apple.

First, the good news. CIRP’s figures show that iPhone XR helped the 2018 iPhones secure 59% of all iPhone sales in the second fiscal quarter, so more buyers choose the latest-generation models and not the previous, and typically more affordable, devices.

The bad news is that more customers choosing the iPhone XR means that the Average Selling Price, or ASP, is also lowered.

“iPhone XR continues to dominate US iPhone sales,” said Josh Lowitz, CIRP Partner and Co-Founder. “It remains the best-selling individual model again this quarter, after launch early in the December 2018 quarter. In the US, the newest iPhone models sold about as well as the newest models a year ago, at about 60% of total sales. Based on these trends, we estimate an Average Selling Price of around $800, a decrease from the previous quarter.”

More iPhone buyers paying for cloud storage

CIRP also reveals an increase in the number of iPhone customers who also purchase additional Apple services, like iCloud storage and AppleCare.

According to their numbers, 48% of the iPhone buyers also purchased iCloud storage, while 21% of them acquired an Apple Music subscription. Surprisingly, only 3% picked AppleCare.

“Apple Care warranties sell poorly, in light of the intense competition from mobile phone carriers, retailers, and other warranty providers. Apple also confronts similar competition in music, with Spotify, Amazon, Pandora, and others fighting for Apple Music streaming subscribers,” CIRP says.

Apple no longer reveals the number of iPhones it sells every quarter and the company would only offer an indicative to tell if the overall market performance declined, stagnated, or improved.

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iPhone XR tops sales in the US
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