Yes, it seems that Apple has posted yet another record-smashing earnings report as it generated $74.6 billion in sales and an EPS of $3.06. But there’s one particular number that should really impress us when looking at Apple’s earnings: A huge rise in the average selling price (ASP) for iPhones.
Jan Dawson has posted the following chart on Twitter that compares the iPhone’s ASP with the iPad’s ASP. We can see that while the iPad has continued to decline from quarter to quarter, the iPhone has just hit a new high of $687.
In some ways, this shouldn’t surprise us because Apple’s iPhone 6 Plus costs $100 more than the iPhone 6, which means that Apple is now selling devices that are more expensive than any it’s ever released.
On the other hand, it’s still remarkable how Apple has been able to keep the iPhone’s ASP high in a brutally competitive market that has even forced companies as successful as Samsung to focus more on low-end and mid-range devices to compete with vendors such as Xiaomi. Other than the brief experiment with the iPhone 5c, Apple has never tried to play this game.
This is also significant because for a long time the iPhone has been Apple’s main “profit monster” and has delivered higher gross margins than any other Apple product around. With record quarterly sales and an ASP that’s still on the rise, Apple can practically print money with its iPhone business at this point.
CNBC points out that Apple’s iPhone business by itself is “bigger than Google and Microsoft combined,” which is again an absolutely stunning testament to the iPhone’s success.