Apple’s iPhone US-Weighted Average Retail Price (US-WARP) saw a decline in the June 2024 quarter, dropping to $966 from $995 in the previous quarter. Despite this, it was up from $948 in the June 2023 quarter. This trend follows Apple’s cessation of releasing the Average Selling Price (ASP) for iPhones since 2018, with CIRP continuing to track US-WARP as a close alternative.
Factors Influencing US-WARP
Several factors contribute to the changes in US-WARP. One significant factor is the shift in consumer preference towards older, cheaper iPhone models. This shift is driven partly by an influx of Android switchers, who typically start with more affordable iPhone models. This contrasts with the trend of repeat iPhone buyers who often opt for the latest and more expensive models.
Additionally, storage upgrades remain popular among buyers, with many choosing to purchase models with higher storage capacities beyond the base level. However, the overall impact of these upgrades is overshadowed by the move towards older models.
Market Trends and Sales Patterns
The observed trend in US-WARP aligns with previous patterns seen in June quarters. Typically, by the time the June quarter arrives, the most dedicated iPhone upgraders have already made their purchases following the initial release of new models. The remaining buyers during this period tend to be less focused on acquiring the latest technology, contributing to the decline in US-WARP.
This quarter’s data suggests a potentially weak sales performance overall, despite high unit sales of lower-priced models. The increased percentage of Android switchers and the preference for older models indicate broader market shifts that could affect Apple’s revenue from iPhone sales.
The decline in US-WARP for the iPhone reflects significant shifts in consumer behavior, with a notable preference for older, more affordable models and an increase in Android switchers. These trends highlight the evolving dynamics in the smartphone market and present challenges and opportunities for Apple as it navigates these changes.
