The latest data from Consumer Intelligence Research Partners (CIRP) suggests that the iPhone XR continues to dominate US smartphone sales. The XR is the best-selling model for the second quarter running.
The news follows Kantar data showing that the iPhone XR was also the best-selling smartphone in the UK …
So far as the breakdown across iPhone models is concerned, the iPhone XS Max continues to outsell the smaller model. It seems those who want the flagship iPhone have been drawn to the larger screen size, while those content with a smaller screen have been more likely to opt for the cheaper iPhone XR.
The success of the XR does represent bad news for Apple in one respect, however: the impact on average selling price (ASP).
“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.”
CIRP’s US smartphone sales report for the previous quarter found that higher storage tiers were helping boost ASP, but this effect is now being offset by the lower price of the XR.
The percentage of iPhone buyers who paid up for increased storage grew to 38% [last] quarter from 33% in the year ago quarter. Based on the elevated pricing associated with larger storage, as well as the model mix sold in [first] quarter, we estimate Apple increased its ASP to well over $800.
However, Services revenue appears healthy. CIRP found that almost half of US iPhone buyers had paid iCloud storage tiers, with high levels of Apple Music subscriptions also.
Among US iPhone buyers in the quarter, 48% use paid iCloud storage […] 21% of iPhone buyers use the Apple Music streaming service, and 13% use the legacy iTunes music service.
Though AppleCare isn’t a popular choice.
Apple Care warranties sell poorly, in light of the intense competition from mobile phone carriers, retailers, and other warranty providers.
As in the UK, the iPhone XR has proved an upgrade catalyst for owners of older phones who were unwilling to pay the price premium for the iPhone X/XS/Max.
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