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Bloomberg
Apple Inc. results next week will likely show iPhone sales growing again, bucking a year of declines. That’s the good news. The bad news: The average selling price of the handsets in the key holiday quarter ending in late December may show customers settling for older iPhone 6S models, rather than the iPhone 7, introduced in September, according to some analysts.
“Recent smartphone customers increasingly are opting for the iPhone 6S,†Barclays analyst Mark Moskowitz wrote in a note to clients this week as he downgraded his recommendation on Apple stock to hold. “We detect increasing concern among industry participants that smartphones in general have evolved technologically to become more than good enough to serve most users’ digital needs over multiple years or until the device breaks.â€
Apple is scheduled to report quarterly results on Jan. 31. Analysts currently predict an average selling price, or ASP, of $688 for the iPhone line in the holiday quarter, down from $691 a year earlier, according to estimates compiled by Bloomberg News. That’s even though the iPhone 7 Plus model costs $20 more than the iPhone 6S Plus when it was introduced. A new iPhone launch has in previous years consistently led to an increase in ASP. An ASP decline may suggest the iPhone 7’s better camera, faster processor, improved battery life and water resistance weren’t enough to draw customers away from the 6S.