Consumer Intelligence Research Partners reports that the iPhone XS and iPhone XS Max saw a strong launch last quarter resulting in the highest US-WARP ever. While the new iPhones were only available for ten days of the fiscal quarter ending September 29, 2018, they accounted for 8% of US iPhone sales for the entire quarter. The iPhone X accounted for 14% of sales and the iPhone 8 and iPhone 8 Plus, were 16% and 17% of sales, respectively.
“The iPhone launch quarter is always tricky to understand, and this one is trickier than others” said Josh Lowitz, CIRP Partner and Co-Founder. “This year, Apple launched iPhone XS and XS Max, the two most-expensive models, at the end of the quarter. Last year, Apple launched the more-expensive iPhone X in the following quarter. So, during the quarter ending September 29, 2018, Apple had an unprecedented ten models to track. The iPhone XS and XS Max performed similarly to the iPhone 8 and 8 Plus did in their similar launch quarter last year.”
In the September 2018 quarter, CIRP calculates US-WARP at $796. This is up from $751 in the June 2018 quarter, and from $705 in the September 2017 quarter. US Weighted Average Retail Price (US-WARP) is an analogue to Average Selling Price (ASP) that investors can estimate using unit sales and revenues that Apple discloses each quarter. US-WARP and ASP differ because ASP includes international results, and also reflects wholesale discounts and other promotional pricing that Apple may offer to carriers and other retailers. US-WARP generally tracks and anticipates ASP.
“US-WARP increased significantly in this quarter, which suggests ASP will, too,” said Mike Levin, CIRP Partner and Co-Founder. “Apple priced iPhone XS and XS Max at the highest levels ever, with even higher premiums for larger storage capacities. The first nearly $1,000 iPhone did not arrive until the following quarter last year, which widens the gap this quarter. In addition, this year’s product line-up contributes to the difference. This year, the most expensive iPhone XS and XS Max models captured early premium demand, while other upgraders may wait a month for iPhone XR, possibly moderating US-WARP in the December 2018 quarter.”
Check out the chart below for more details...
“The iPhone launch quarter is always tricky to understand, and this one is trickier than others” said Josh Lowitz, CIRP Partner and Co-Founder. “This year, Apple launched iPhone XS and XS Max, the two most-expensive models, at the end of the quarter. Last year, Apple launched the more-expensive iPhone X in the following quarter. So, during the quarter ending September 29, 2018, Apple had an unprecedented ten models to track. The iPhone XS and XS Max performed similarly to the iPhone 8 and 8 Plus did in their similar launch quarter last year.”
In the September 2018 quarter, CIRP calculates US-WARP at $796. This is up from $751 in the June 2018 quarter, and from $705 in the September 2017 quarter. US Weighted Average Retail Price (US-WARP) is an analogue to Average Selling Price (ASP) that investors can estimate using unit sales and revenues that Apple discloses each quarter. US-WARP and ASP differ because ASP includes international results, and also reflects wholesale discounts and other promotional pricing that Apple may offer to carriers and other retailers. US-WARP generally tracks and anticipates ASP.
“US-WARP increased significantly in this quarter, which suggests ASP will, too,” said Mike Levin, CIRP Partner and Co-Founder. “Apple priced iPhone XS and XS Max at the highest levels ever, with even higher premiums for larger storage capacities. The first nearly $1,000 iPhone did not arrive until the following quarter last year, which widens the gap this quarter. In addition, this year’s product line-up contributes to the difference. This year, the most expensive iPhone XS and XS Max models captured early premium demand, while other upgraders may wait a month for iPhone XR, possibly moderating US-WARP in the December 2018 quarter.”
Check out the chart below for more details...