Ahead of Apple’s financial earnings call covering the holiday quarter, analysts are speculating that the average selling price for iPhones has declined. A report from Bloomberg shares that even though there may be growth for total iPhone units shipped compared with the year ago quarter, predictions say it will be the strong rise in Apple’s services that will increase revenue for the quarter.
At first, a $3 decline per iPhone doesn’t sound like a lot, but when you consider multiplying that times the estimated 76 million iPhone sold in the holiday quarter, it’s almost a quarter of a billion dollar revenue decrease. Analyst Mark Moskowitz detailed why the average selling is likely dropping.
Another factor that contributed to the lower average iPhone prices was the iPhone SE. In previous years, an iPhone launch meant an increase in average selling price, but as Bloomberg’s graph shows, the iPhone SE dramatically changed that trend and continues to lower the ASP post iPhone 7.
While we’ll have to wait until Tuesday to know the actual results. All of this will likely put more pressure on Apple to knock it out of the park with this year’s iPhone release.
