Pricing is the hot topic yet again for Apple Inc. as the company’s new iPhone 15 lineup lacked ground breaking feature improvements.
Meanwhile, Apple kept prices the same on its other three models, including the regular iPhone 15 Pro.UBS analyst David Vogt called the pricing decisions “modestly disappointing” for trends in average selling prices. He estimates that 40% to 50% of iPhones sold in the first few quarters are Pro or Pro Max versions, so an $100 boost to all storage configurations could have meant a 4% to 5% revenue tailwind on the iPhone.
“In addition, rising component costs and more complexity potentially leading to a higher bill-of-materials in the new Pro and Pro Max models relative to last year could pressure Product contribution margins going forward,” Vogt continued, though he said he would “reserve judgement” until experts do teardowns of the lineup.
He sees the potential for a “strong replacement cycle” given the large base of users who currently own the iPhone 12 and are due for upgrades.
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