The average selling price (ASP) of iPhones has seen an $18 increase, reaching $971, according to recent data from Consumer Intelligence Research Partners (CIRP). This rise, from $953 in the fourth quarter of 2024, isn’t solely attributable to economic factors like tariffs, as some might assume. The shift is primarily due to Apple’s strategic decision to discontinue the iPhone SE and iPhone 14 lines.
Analysts utilize metrics like the U.S. Weighted Average Retail Price (US-WARP) to track ASP, as Apple ceased publicly reporting these figures after 2018. The discontinuation of budget-friendly options like the iPhone SE, subsequently replaced by the higher-priced iPhone 16E, has significantly impacted the overall ASP. However, the increase isn’t as dramatic as it could have been. Lower sales of the premium iPhone 16 Pro and Pro Max models have tempered the overall average.
Apple Music on iPhone.
It’s important to recognize that iPhone ASP typically fluctuates throughout product cycles. However, this particular increase is occurring earlier than usual. Amidst current economic uncertainties, this suggests a growing consumer preference for more affordable iPhone models over the top-tier versions.
Earlier this year, reports indicated a surge in used iPhone purchases exceeding new ones. This trend was largely attributed to the perceived lack of compelling features in the iPhone 16 Pro and Pro Max, particularly with the delayed release of advanced Siri functionalities. These premium features seemingly failed to justify the higher price point for many consumers.
With potential supply chain constraints looming for the upcoming iPhone 17, many users anticipate holding onto their current devices longer than usual. While numerous tech companies are exploring alternative sourcing options, Apple may face a more substantial impact due to a confluence of factors. This prolonged usage cycle further underscores the current market dynamics and consumer behavior.
