Apple announced on Thursday that the average price of
an iPhone is nearly $800, or about $100 higher than it was last
The increase is due to the $999 iPhone X, which Apple
says is its best-selling iPhone.
Apple stock rose over 3% in after-hours
Apple set records on Thursday when it reported
December quarter earnings, driving the price up 3% in after-hours
It seems odd, at first glance: Apple actually missed Wall Street
targets on iPhone shipments over the crucial holiday quarter. So
why the exuberance?
One chart gives even Apple’s detractors reason to be optimistic
about the world’s most valuable public company:
This chart shows the average price worldwide that an iPhone is
selling for, and it just made a huge jump. The average iPhone now
costs nearly $800.
The big jump is because of the $999 super-premium iPhone X, which
costs nearly $240 more than the iPhone 7 Plus, which was
previously Apple’s most expensive phone.
“Honestly speaking, there’s no comparison in the revenue,
it’s hugely different,”
Apple CEO Tim Cook told CNBC in a post-earnings interview on
Thursday evening. “In a positive way, obviously.”
Although some analysts believed that Apple’s increased price tag
for its nicest phone might drive customers away, that doesn’t
seem to be the case. Cook told CNBC that the iPhone X has
been company’s best-selling device every week it’s been
available, while the less expensive 8 and 8 Plus appeal to those
who don’t want to pony up $999 for a phone.
Basically, Thursday’s earnings proved that Apple has the room to
raise prices. Now the question for investors is how much higher
they can go.