This coming Friday, Apple iPhone XR will be launched. According to Robert Cihra, who acts as an analyst for Guggenheim…
This coming Friday, Apple iPhone XR will be launched. According to Robert Cihra, who acts as an analyst for Guggenheim Securities, the release of the most affordable 2018 iPhone will adversely affect one of the most important metrics as analyzes that follow Apple watches. It is the average selling price (ASP) for iPhone. Last year, Apple raised the high-priced iPhone X to an ASP over $ 700 from 2016 $ 651.
However, Cihra says that this ASP growth will not happen again for fiscal 2019 due to $ 749 launch price on iPhone XR. In the analyst’s speech, the device is what they call “ASP dilution”. The low price of the phone combined with just the right mix of features is expected to remove sales from iPhone XS and iPhone XS Max. But Cihra adds that the iPhone XR can only attract businesses from those who want to upgrade from their older iPhone 6, iPhone 6 and iPhone 7 models. He sees the LCD screen device that exceeded last year’s iPhone 8 sales by 50%.
The analyst is looking for Apple to report sales of 47 million phones for the fourth quarter, which ended at the end of last month. It would be a 1% profit compared with the previous year. For the holiday quarter, he expects Apple to call 80 million iPhones for a 3% gain compared with last year’s tax rate. ASP should rise by 24% compared with the quarter in September and fall back to 6% for the current quarter. He also says that Apple Watch, paced of the new Series 4, will be part of Apple’s fastest growing category “Other Products” with 38% growth in fiscal 2018 and another 24% in fiscal 2019.
As for Apple iPad, Cihra expects that for Apple’s fourth quarter, which ended in September, transfers increased by 1% over the year. Service revenues are estimated to have increased by 14% to $ 9.7 billion over the same three months.