Apple Has Higher ASPs on Latest iPhones, but Some Services Lagging, Says CIRP

The U.S.-weighted average retail price (US-WARP) of Apple’s latest smartphone series rose by $64 in the December quarter, said Consumer Intelligence Research Partners Thursday. The 12 series model mix resulted in US-WARP of $873 -- the highest in CIRP's iPhone buyer survey of nearly 10 years -- compared with $809 in the December 2019 quarter. The four iPhone 12 models generated 56% of Apple phone sales, despite being available for only part of the quarter, with the 12 and 12 Pro Max each having 17% share, said the research firm. The core iPhone 12, starting at $799, was priced $100 more than last year’s iPhone 11, CIRP noted. For all models, about half of buyers upgraded from base storage, “further boosting average selling price,” said analyst Josh Lowitz. In Apple’s Services segment, paid iCloud storage, Apple TV and Apple Music improved penetration among customers that bought an Apple product in the quarter. Over a third of Apple customers have the streaming music service, and over a quarter have Apple TV+, said analyst Mike Levin. Other services' market penetration was relatively flat with the year-ago quarter, showing the challenges of the segment, said Levin. The company has always had “decent uptake of iCloud storage, with over half of buyers reporting paid usage,” he said, but podcasts and paid news are “relatively steady at earlier levels,” and the company “still struggles to sell AppleCare warranties.” AppleCare, podcasts, iCloud storage and Apple TV+ all face “a range of competitors eager to take on Apple as it works to grow these businesses,” he said. Findings are based on a survey of 500 U.S. Apple customers that bought an iPhone, iPad, Mac or Apple Watch October-December.