Legacy iPhones have been some of the most popular models of cell phones ever since their release. Apple’s iPhone 5 was particularly well received, with its slim and sleek design, improved camera, and faster speed. However, since the introduction of newer iPhone models with improved features, the popularity of Apple’s older iPhones have taken a hit in terms of their “Average Selling Price” (ASP).
Legacy iPhones Biting Apple in the ASP
John Paczkowski, senior editor at All Things D, looks at Apple’s financials and emerging trends and notes that Apple’s latest financial report “showed that the company’s average selling price (ASP) was down, driven largely by its current lineup of legacy iPhones.” He points out that “concerns have started to arise that the quality of Apple’s latest products, particularly the iPhone 5, aren’t strong enough to make up for the loss of revenue from the lower-priced, older models”.
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So what does this mean for Apple? Paczkowski says that “Apple needs to consider how to reinvigorate sales of its older products without cannibalizing its newest ones. With rumors of a lower priced iPhone in the works for the mass-market, Apple may be signaling its intention to sweeten the deal for bargain hunters.” Let’s hope so!
FAQs
Q. Why has the ASP of legacy iPhones declined?
A. The ASP of legacy iPhones has declined due to the introduction of newer iPhone models with improved features.
Q. What does the decline in ASP mean for Apple?
A. The decline in ASP could mean that Apple needs to consider how to reinvigorate sales of its older products without cannibalizing its newest ones.
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