Counterpoint shows Apple upsold the world with iPhone 14 Pro

The Financial Times has published fresh data from Counterpoint to confirm that with its iPhone 14 range Apple has indeed upsold the planet.

iPhone 14 is breaking ASP records, they say

We looked last week at how Apple seems to have persuaded customers to slam down cold hard credit on the Pro range of iPhones, to the extent that the company is switching some production lines to the more expensive choice.

Now the Counterpoint data confirms this pattern. Not only this, but demand is sufficient that Apple is now expected to break its average iPhone sales price for the second time this year.

iPhone ASP is expected to hit $892 this September and may reach $944 this December, the data says. That’s up from the current $873 record Apple achieved on iPhone 13 last year and way up from the $690 ASP Apple held in late 2015.

This is important, in part because smartphone sales pour a lot of cash into the AAPL coffers, but also as a barometer for all the associated products and services Apple provides.

Apple’s decision to make both products more unique has helped drive consumers to the higher end model, particularly if they like photography. The FT cites an Evercore ISI survey which explained that 56% of shoppers planned to purchase a Pro this year.

Seeing the big picture

Big shift to iPhone Pro models

JP Morgan analyst, Samik Chatterjee, recently said an astonishing eight out of ten iPhone 14 pre-orders were for the iPhone 14 Pro or iPhone 14 Pro Max. This follows another recent report that Apple has asked Foxconn to shift five production lines from iPhone 14 across to the iPhone 14 Pro models.

In perhaps a related slice of data, iOS 16 is now installed on 27.47% of iPhones, the latest Mixpanel data states.

The upgrade cycle has also begun

It is also interesting that consumers on older handsets appear now to be upgrading their devices, as the number of people ruining iOS 14 or earlier has reduced by c.0.5%, from c.9.4% to 8.97%. Given perhaps a billion iPhone users in the world, that small number equates to as many as 5 million upgrades from older devices in the last week or so. Multiply that by an ASP of $892 for a sense of the potential value to unlock in that result.

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