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Apple Sells Cheaper Versions of Better Models

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iPhone 5S, iPad Air Increase Share
Smaller Storage, WiFi-Only iPads Improve

Consumer Intelligence Research Partners (CIRP) released analysis of the results from its research on Apple, Inc. for the calendar quarter that ended March 31, 2014.

CIRP finds that the flagship iPhone 5S and iPad Air improved relative to the earlier quarter. Yet, all models also sold in smaller storage configurations.

The flagship iPhone 5S accounted for 62% of total iPhone sales in the quarter, compared to 53% for the iPhone 5 in the January-March 2013 quarter. In addition, the flagship iPad Air accounted for 47% of total iPad sales in the quarter, compared to 35% for the iPad with Retina display in the year-ago quarter (see charts).

iPhone Models
2014-04-25-chart1.jpg

iPad models
2014-04-25-chart2.jpg

Clearly, Apple flagship products sold well in the quarter. At the other end of the market, Apple continued to sell the 'free' iPhone 4S, which had the same share as the free iPhone 4 did a year ago, so the mid-priced iPhone 5C was squeezed. Similarly, the smaller format iPad mini and mini with Retina Display also squeezed the formerly robust, mid-priced iPad 2 and now re-released iPad with Retina display.

Apple also sold models with less storage than in the previous quarter (see table).

iPhone and iPad Average Storage (GB)
2014-04-25-table1.jpg

While the model mix was very strong, Apple sold relatively cheaper storage configurations for these leading products.After the holiday quarter, buyers seemed to gravitate to the flagship models, while economizing with smaller storage capacity. We expect to see stable or even slightly lower US ASPs as a result.

CIRP bases its findings on its survey of 500 US Apple customers, surveyed from April 1-7, 2014, that purchased an iPhone, iPad, or Mac in the US in January-March 2014.

For additional information, please contact CIRP.

 
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