New iPad Model Lineup Splinters Apple Tablet Effort
Consumer Intelligence Research Partners (CIRP) released analysis of the results from its research on Apple, Inc. (NASDAQ:AAPL) for the fiscal quarter that ended December 27, 2014.
CIRP finds that the new iPhone 6 and 6 Plus sales continued well, as Apple found a way to sell more units at higher price points. In contrast, iPad sales trended toward less expensive models. The new iPhone 6 and 6 Plus models accounted for three-quarters of all iPhones sold in the quarter, with iPhone 6 at 45 percent and iPhone 6 Plus at 30 percent (see Chart 1).
Chart 1: iPhone Models US Sales Mix, Fourth Quarter 2014 and 2013
The iPhone 6 and 6 Plus showed continued strength after the powerful launch at the end of the third quarter. Apple introduced a new higher price point with the iPhone 6 Plus, and with new pricing sold more units at higher storage capacities. We expect the average selling price to increase nicely when they report earnings on January 27.
The full-size format iPad Air continued to dominate sales of iPad tablets. Together the one-year old iPad Air and recently released iPad Air 2 accounted for 50 percent of all iPad sales in the quarter (see Chart 2).
Chart 2: iPad Models US Sales Mix, Fourth Quarter 2014 and 2013
Last year's dominant iPad Air continued to sell well, and after the launch of the Air 2 in the middle of the quarter, together they account for half of iPad US unit sales. The iPad mini format, with three different models, account for less than a third of sales, down from over 40 percent a year-ago. The iPad mini 3, with only modest changes from the iPad mini 2 and a $100 price premium garnered only 6 percent of sales. Overall, with WiFi-only units at well over half of sales, and sales of lower storage capacities increasing somewhat, we expect average selling price to decrease compared to earlier quarters.
CIRP bases its findings on its survey of 500 US Apple customers, surveyed from December 28, 2014-January 5, 2015, that purchased an iPhone, iPad, or Mac in the US in October-December 2014. For additional information, please contact CIRP.