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Consumer demand for premium iPhones with extra storage is fueling a rise in the average price of the device, which has exceeded $1,000 for the first time.
Apple’s latest iPhone models have reached a new high in popularity and price, with the US average retail price (US-WARP) reaching a record $1,018 in the September 2024 quarter. The increase is primarily driven by strong consumer demand for the Pro and Pro Max models, which feature expanded storage, according to the latest data from Consumer Intelligence Research Partners (CIRP).
As consumers continue to prioritize premium features, average iPhone prices have been steadily rising. In the most recent quarter, 47% of all iPhones sold were Pro or Pro Max models, a significant jump from 38% in the same period last year.
Consumers increasingly view high-end devices as long-term investments, valuing enhanced features and extra storage. Apple’s decision to stop disclosing the average selling price (ASP) for iPhones has made US-WARP an important metric for understanding how US consumer preferences are changing.
Unlike ASP, which takes into account volume discounts and often shows a blended price across all sales, US-WARP focuses solely on direct retail sales, providing a more transparent view of consumer spending on Apple devices.
September has become a key month in Apple’s sales calendar, with a unique mix of product launches and promotions for previous-generation models. Many buyers wait until new models are released, hoping to capitalize on the latest features. Meanwhile, others — often motivated by urgent needs like replacing a device — are less inclined to wait and buy earlier in the quarter.
US-WARP’s record-high figure reflects two critical changes in Apple’s customer base. First, Apple’s premium models are gaining traction, with more customers opting for the advanced features offered in the Pro and Pro Max versions.
iPhone average retail price in the US. Image credit: CIRP
Second, expanded storage options have become a priority as buyers recognize the value of additional storage for photos, videos, and apps, especially as these needs continue to grow.
Apple’s focus on high-end devices with features like superior camera lenses and faster processing, as exemplified by the iPhone 15 and iPhone 16 series, has proven effective in attracting buyers who view their smartphones as essential tools worthy of a premium investment.
The company strategically positions its Pro models as the top of the line, creating a clear distinction between the standard and high-end options. This “ap-Pro-ach” has attracted a larger customer base willing to invest in premium models, viewing them as long-term purchases with superior performance and advanced features.
High-end smartphone models have become a defining trend, with consumers willing to pay more for cutting-edge technology. Apple’s record-breaking iPhone prices reflect this, driven by premium devices, consumer interest in features, and expanded storage options. While iPhones have risen in price, many buyers see value in the premium features, viewing the higher price as an investment in a powerful device.
CIRP’s report shows a shift in consumer preferences, prioritizing performance and storage. As Apple develops more sophisticated models, iPhone prices may hold, changing consumer expectations and strengthening Apple’s position in the premium smartphone market.
Apple’s strategy of focusing on high-end devices is thriving. As iPhones improve and become more expensive, consumers are willing to pay for the brand’s advanced technology and premium experience, underscoring Apple’s influence on the smartphone industry.
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