There is no doubt that Apple's recent (NASDAQ: AAPL) iPhones have been quite negative in recent weeks. Major suppliers have lowered their revenue guidance for the current quarter, there have been reports of production cuts for the latest iPhone models, and some analysts have lowered their price targets for potentially weak iPhone sales.
Let's just say that if you stuck to Apple shares, it was not an easy ride.
To shed light on the prospect, Consumer Intelligence Research Partners (CIRP) ̵
The successful iPhone XS Max
According to data from CIRP, the iPhone XR was Apple's best-selling iPhone in the US in November. Not surprisingly, especially considering that Greg Joswiak, an Apple CEO, said, "[since] The iPhone XR became available, it was the best selling iPhone sold every day."
The most interesting data point was that the iPhone XS Max – the company's most expensive device – was the best-selling model. In third place was the standard iPhone XS – the direct successor of last year's iPhone X.
After the availability of the iPhone XS and iPhone XS Max, it was reported that customers seemed to prefer the iPhone XS Max to the iPhone X The CIRP However, the report contains some more specific information about the relative revenue mix of the different models in an important geographic region for the iPhone maker.
What this data seems to suggest is that customers in the iPhone XS Max find enough value to pay the additional $ 100 in addition to the already high base price of the iPhone XS. (As a reminder, the iPhone XS starts at $ 999 for the 64GB model and goes up to $ 1,349 for the 512GB version.)
From the point of view of average iPhone retail prices, the Customers for the iPhone XS Max instead of the iPhone XS is a good thing.
One more thing
Another thing that struck is the fact that the iPhone XR had a smaller share of total revenue in November 2018 than the iPhone 8 and iPhone 8 Plus in November 2017, the iPhone made XS and The iPhone XS Max in November actually made up a larger portion of the sales than the iPhone X in November 2017.
It's worth noting that the iPhone X was for sale in the United States, which began on November 3, 2017 The iPhone XS and iPhone XS Max will be technically available for longer in November 2018 than the iPhone X in November 2017 (though Apple already received orders on October 27, 2017 may have dulled this three-day benefit).
Nevertheless, the combination of iPhone XS and iPhone XS Max – at least in the US – seems to be more successful than the iPhone X in the previous year. And that generally seems to be a positive outcome for the average selling price of iPhone in the US as well as for brand strength (I can not imagine other smartphone makers being able to get as many 999-plus smartphones per month
We'll know more about how the iPhone business has developed overall as soon as the company reports its earnings results, which should be either in late January or early February 2019.
Ashraf Eassa has not mentioned any position in any of the stocks. The Motley Fool owns shares of Apple and recommends Apple. The Motley Fool has the following options: long January 2020 calls of $ 150 at Apple and short January 2020 – $ 155 calls to Apple. The Motley Fool has a disclosure policy.