The mobile phone market is quite complex so we understand if brands struggle with vital decisions. At the moment, there is a decline in the overall performance of the mobile phone market. Despite this decline, flagship mobile phones have shown a year – on – year growth trend in the past three years. This is mostly for mobile phones that sell above $600. A data report from the market research firm CIRP shows that in the first quarter of 2023, the average selling price of the iPhone will reach $988. This is a year-on-year increase of 12%, a new record high.
Among them, iPhone 14 Pro and iPhone 14 Pro Max are the most popular models of the iPhone series. Although the prices of the two phones are quite high, they still account for nearly half of the total sales. The average selling price of an iPhone in the same period last year was $882. A year earlier in 2021, the closing price in 2021 is $847.
In contrast, the performance of the two entry – level models of the iPhone 14 is mediocre. In fact, they are almost the same as the previous generation models. Everyone would rather buy the iPhone 13 than the iPhone 14. In addition, users’ demand for mobile phone storage space is also increasing. This is forcing more people to choose higher – capacity mobile phones, which further increases the average selling price.
Apple financial report
Earlier, Apple released its financial report data for the first quarter of 2023. The report reveals that Apple’s revenue in the first quarter of fiscal year 2023 was $117.15 billion. This is lower than the market projection of $121.14 billion. Specifically, iPhone revenue in the first quarter of fiscal year 2023 was $65.78 billion. Also, the market expected $68.3 billion. Apple Mac revenue was $7.74 billion, compared with analyst expectations of $9.72 billion. iPad revenue was $9.40 billion, analysts expected $7.78 billion. Wearable, home, and peripheral revenue was $13.48 billion, analysts expected $15.32 billion. So, we can see that there is a general reduction in analysts’ expectations. However, iPhone’s average selling price still increased.
Analysts at CIRP, a market research firm, said that “it is very unusual for Apple to achieve an increase in the average selling price in a quarter that is usually not ideal”. In the past, the average selling price of the iPhone would reach its peak in the two time periods of new iPhone releases in September and holiday promotions in December.
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However, Apple has managed to attract more users to buy high – end phones by optimizing its product portfolio and offering rich recycling programs. At present, the iPhone is indeed the world’s second – hand device with the highest replacement value. It can be exchanged for the latest model through high value. It also provides high cost performance for users who buy second-hand models.
iPhone 15 series to bring major changes
Apple is now preparing for the autumn conference in September, and the major changes to the iPhone 15 series are highly anticipated. In addition to the use of dynamic islands in the whole series, the USB Type-C interface is the most interesting thing. Although it was initially revealed that Apple would conduct MFi certification for the USB Type-C interface of the iPhone 15 series and restrict the charging of other non-MFi cables. Recent reports reveal that Apple has not yet developed MFi restrictions, and restricting MFi may violate EU laws.
In any case, Apple will not distribute chargers and earphones when buying an iPhone. After changing the USB Type-C interface, it means that everyone may have to buy a new charger. And changing the interface does not mean that the charging power will increase. There are reports that the iPhone 15 standard model has a maximum charging power of 20W. However, the iPhone 15 Pro series models support up to 27W charging.
Why Apple “fanboys” will buy the iPhone irrespective of price
There are several reasons why people become “fanboys” of brands or products. One reason is that they may identify strongly with the values or ethos of the brand. For example, Apple has built a reputation for innovation, design, and quality, and many fans of the brand may feel that these values align with their own personal values.
The success of the iPhone and its fans’ desire to pay more for it are influenced by an array of factors. The iPhone’s repute for quality and design is one element. Over the years, Apple has built a solid brand image, and the iPhone has come to be seen as a premium product that is linked with creativity and cutting – edge tech. Users who already possess other Apple items may find the iPhone to be more alluring because Apple has built a vast ecosystem of related goods and services.
The social standing that comes with having an iPhone is another reason for the device’s appeal. Owning an iPhone today might be seen by others as a show of success, sophistication, and tech know – how. Although this is largely not true, that’s what it is in many regions. Younger buyers, who might be more inclined to be swayed by peer pressure and status, may find this idea to be very appealing.
As a whole, “fanboyism” is a complex issue that can be affected by a number of factors, such as social standing, a sense of worth, brand loyalty, and ecosystem integration. Even though not all iPhone users are “fanboys,” Apple’s loyal and fervent fan base surely has an impact on the device’s appeal and high price point. This is what it is at the moment.