Despite of strong U.S. dollar, Apple managed to increase average selling price of its iPhone smartphones to $659 in its fiscal 2015 second quarter ended March 28, 2015. The increase is a result of strong demand for more expensive high-capacity models as well as iPhone 6 Plus.
During the quarter, Apple sold 61.2 million iPhone handsets, an increase of over 40 per cent over the same period a year ago. According to the company, sales of its smartphones more than doubled in South Korea, Singapore, Taiwan, and Vietnam, and they were up 80 per cent or more in several other markets, including Canada, Mexico, Germany, and Turkey.
“We are seeing fantastic results for iPhone, with revenue growth of 55% year on year, and we are seeing a higher rate of switchers than we have experienced in previous iPhone cycles,” said Tim Cook, chief executive officer of Apple, during the company’s conference call with investors and financial analysts. “The success of iPhone has been extremely strong in emerging markets, where unit sales were up 63% year on year.”
Thanks to strong demand for iPhone 6 versions with enhanced storage capacities as well as larger iPhone 6 Plus, average selling prices of Apple’s handsets increased to $659, or by $62 compared to their ASP a year ago. Keeping in mind that the U.S. dollar got significantly stronger in the recent quarters, it got meaningfully harder for all U.S.-based companies to increase their ASPs.
According to Gartner, in Q4 2014 Apple was the largest supplier of smartphones in the world with 20.4 per cent market share. Samsung Electronics controlled around 19.9 smartphone unit shipments, whereas Lenovo Group was the distant No. 3 with 6.6 per cent share. While the results for the first quarter are unknown, some believe that despite of undeniable success, Apple’s market share will be down in Q1 2015.
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KitGuru Says: iPhone continues to be the most important product for Apple. Therefore, it is great that the company manages to increase its ASP. What remains to be seen is whether Apple will manage to sustain very rapid sales growth of its smartphones…