Apple Inc sold fewer iPhones than expected in the first three months of the year, but that bare statistic hides an important bright spot for the company. The average selling price of an iPhone grew more than it has since the days of the iPhone 6.
Apple does not break out figures for how many of each model it sells, but executives pointed to the premium-priced iPhone 7 Plus, which sells for up to $969 fully loaded, as the key to boosting the amount it gets on average for each phone.
The average selling price of iPhones is important to Apple because the smartphone market is maturing and its growth slowing. Apple's ability to get more cash for each phone sold is critical to growing its profits.
"One of the things that we did not get right was the mix between the iPhone 7 and the iPhone 7 Plus," Apple Chief Executive Tim Cook told analysts on the company's earnings conference call on Tuesday, in response to a question about how supply of its top-end phone was constrained during the holiday shopping season.
"The demand was much stronger for the 7 Plus than we had predicted, and so it took us a little while to adjust all the way back through the supply chain and to bring iPhone 7 Plus into balance, which occurred this past quarter."
The popularity of the iPhone 7 Plus model represents a triumph for Apple with a new departure: packing a unique feature into its most expensive iPhone.
The iPhone 6 Plus differed from its smaller sibling only in screen size, but the 7 Plus model has a physically different camera that enables what Apple calls "portrait mode" for taking shots with a blurred background - a feature more commonly found on large, expensive digital cameras.
It is a strategy Apple could use again. Many analysts believe the company will reserve certain features for the premium-priced model of its next, eagerly awaited iPhone - such as a higher-quality display - that could sell for more than $1,000.
So far, customers seem to be willing to pay more for the extra camera in the iPhone 7 Plus, which is one reason that Apple made slightly more revenue selling slightly fewer iPhones in the latest quarter than a year ago, for an average price of $656.
That price was 2 percent higher than 12 months ago, the best improvement in a year. During 2016, selling prices even went into a decline, year on year, during the iPhone 6s cycle after soaring on the release of the original iPhone 6 and 6 Plus, which introduced larger screens to the Apple lineup for the first time.
"The important thing is the average selling price should not fall," said Anil Doradla, a research analyst with William Blair & Co. "I have full confidence that it won't. Apple just doesn't cut pricing to gain market share. It's not in their DNA."
Reeza Redzuan Rosnan
Wed May 03 2017
The average selling price of iPhones is important to Apple because the smartphone market is maturing and its growth slowing. Apple's ability to get more cash for each phone sold is critical to growing its profits. - Filepic
Penolong pegawai perubatan didenda RM3,000 terima rasuah urus jenazah
Seorang penolong pegawai perubatan di Hospital Sultan Haji Ahmad Shah Temerloh didenda RM3,000 kerana menerima rasuah berkaitan kerja pengurusan jenazah.
KBS laksana kajian impak penganjuran Sukan SEA 2027
Mesyuarat mengenai perkara itu masih berjalan dengan penglibatan pelbagai pihak bagi mengenal pasti kelebihan dan kekurangan.
19 individu ditahan dipercayai terbabit sindiket pelaburan palsu
Mereka terdiri daripada lapan lelaki dan tujuh wanita tempatan serta empat lelaki warga asing berusia antara 16 hingga 38 tahun.
[TERKINI] Selamatkan Gaza: Dialog dua Perdana Menteri di Mesyuarat Khas WEF Arab Saudi
Tiga PM iaitu PM Palestin, Jordan dan Mesir serta wakil PBB di Gaza duduk sepentas berdialog secara langsung mencari formula menyelamatkan Gaza yang menjadi pusat graviti kepada kestabilan rantau Asia Barat.
OCC: Masih banyak usaha perlu dibuat dalam isu hak kanak-kanak - Azalina
Malaysia masih ketinggalan berbanding negara lain dalam menangani isu penderaan dan masalah sosial melibatkan kanak-kanak.
Piala Asia B-23: Indonesia tekad roboh benteng kebal Uzbekistan
Bintang skuad Garuda Muda, Witan Sulaeman, teruja dengan peluang untuk melakar lebih banyak sejarah ketika membuat persiapan menghadapi aksi separuh akhir PIala Asia B-23 malam ini.
Airbus RACER helikopter terpantas dunia?
Ketika masih dikenali sebagai pesawat eksperimen X3, ia memegang rekod sebagai helikopter terpantas dengan kelajuan mencecah 472 km/j.
AWANI Ringkas: Letupan bom di Thailand | Hadapi dua pertuduhan
Ikuti rangkuman berita utama yang menjadi tumpuan sepanjang hari di Astro AWANI menerusi AWANI Ringkas.
Mesyuarat Khas WEF: Tekanan politik dalaman punca Israel ‘menggila’ - PM Jordan, Mesir
Kedua-dua perdana menteri negara Asia Barat itu setuju serangan ketenteraan di Rafah hanya akan memburukkan keadaan yang sudah sedia meruncing.
Tingkat kawalan di sempadan tangani kemasukan kambing, lembu murah menjelang Aidiladha
KPKM meminta jabatan dan agensi kerajaan berkaitan kawalan sempadan memperhebat penguatkuasaan serta kawalan di pintu masuk negara bagi menangani kemasukan kambing dan lembu murah menjelang Aidiladha.
iPad Pro mungkin dijana dengan cip Apple M4 terbaharu, fokus ciri AI
Cip Apple M4 dijangka memfokuskan kepada keupayaan enjin neural yang disertakan bersama dengannya membolehkan ia menawarkan ciri AI yang lebih baik.
Apple perkenal HomePod, HomePod Mini di Malaysia, harga bermula RM529
Kedua-duanya akan mula dijual 10 Mei 2024 untuk pasaran tempatan.
Apple dalam perbincangan guna teknologi OpenAI dalam iOS 18 - Laporan
iOS 18 akan membawakan perubahan paling besar untuk sistem operasi iPhone tahun ini dan integrasi sistem AI akan akhirnya didedahkan.
'Made in Malaysia' - Apple punyai 19 kilang pembekal di negara ini
Malaysia merupakan salah satu negara yang mempunyai beberapa kilang pembekal yang menawarkan komponen kepada Apple.
Syarikat induk Google kini kembali bernilai lebih AS$2 trilion
ALPHABET, syarikat induk disebalik Google kini sekali lagi berjaya mencapai nilai pasaran semasa melangkaui AS$2 trilion.
TSMC akan hasilkan cip 1.6nm menjelang 2026
Menurut TSMC, teknologi 1.6mm akan memberikan peningkatan prestasi sehingga 8-10% untuk voltan yang sama serta pengurangan penggunaan kuasa antara 15-20% pada kelajuan yang sama.
Apple dilapor kurangkan pengeluaran Vision Pro susulan permintaan rendah
Walaupun jualan pada awalnya amat memberangsangkan, momentum tidak berterusan kerana unit awal hanya dibeli oleh peminat paling tegar Apple.
Apple dilapor hentikan pengeluaran aksesori FineWoven kerana isu kualiti
FineWoven menggantikan aksesori kulit yang dilihat sebagai tidak lestari dan oleh itu tidak selari dengan sasaran syarikat yang ingin mengurangkan impak ke atas alam sekitar.
Apple dilapor sedang bangunkan model bahasa raya untuk peranti
Laporan berkenaan hal ini telah hadir beberapa kali sebelum ini, membuatkan Apple seperti kelihatan agak tertinggal dalam arena berkenaan.
Apple dijangka hadir dengan cip Apple M4 memfokuskan AI tahun ini
Apple dijangka memperkenalkan cip berkenaan pada tahun ini, melalui kemas kini untuk model iMac, MacBook Pro dan juga Mac Mini.