Apple iPhone’s average selling price well above the Android

In a recent consumer survey, Apple became the most gifted luxury brand in China ahead of other luxury brands such as Louis Vuitton, Gucci, and Chanel.

Puneet Sikka - Author

Nov. 20 2020, Updated 12:26 p.m. ET

uploads///Apple ASP

Apple increases its average selling price by $50

Apple (AAPL) maintains a luxury brand image and has avoided reducing prices of its products in order to gain market share. In a recent luxury consumer survey conducted by Hurun Research Institute of China, Apple became the most gifted luxury brand in China ahead of other luxury brands such as Louis Vuitton, Gucci, and Chanel. The luxury image of Apple is also reflected in the average selling price (or ASP) of the iPhone.

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According to Apple’s filings and as the chart below shows, the ASP of the iPhone increased from $637 in 1Q14 to $687 in 1Q15. Apple got the benefit of selling the iPhone Plus models at a $100 premium to the iPhone 6 model. Apple also benefited by selling higher-capacity 64GB and 128GB models at a higher price. Read Why new iPhones could help Apple boost its average pricing to understand the pricing of Apple’s iPhone 6 and iPhone Plus models.

Gap between Apple and Android ASP widens

According to a report from ABI Research and the Wall Street Journal, the ASP of Google (GOOG)(GOOGL) Android-based smartphones declined by $100 over the last year to only $254. For Microsoft (MSFT), the situation is even worse, with its ASP at $45 in the last quarter. The report also noted that Xiaomi’s ASP was $220.

Apple comprises about 18% of the Technology Select Sector SPDR ETF (XLK), which makes it the top holding security for XLK.


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