Apple reported a decline in iPhone revenue for the most recent fiscal quarter. decreasing to $39.67 billion during the third quarter. Which is still rather impressive, and I’m certain that any other smartphone manufacturer would adore having that amount of money from just the phones. However, there is a reason why the current figure is lower than it was a year ago.
The average retail price of the iPhone in the US was $948 in the third fiscal quarter, compared to $988 in the previous quarter, according to research firm CIRP.
For the quarter, sales of the iPhone 14 and 14 Plus accounted for around 36% of total sales. The iPhone 13 and iPhone 13 Pro only accounted for 30% of sales in the US the year before. People are therefore purchasing “cheaper” iPhones. However, it’s not the only one.
The 128GB storage option that comes with the base price is what most iPhone owners choose to stick with. Prior to the last quarter, a far larger percentage of users would upgrade to 256GB, 512GB, or even 1TB. However, approximately 30% of consumers began to update their storage as of June. versus 55% a year ago.
iPhone buyers are trying to save money
Literally everything is getting more expensive. And those who are purchasing a new iPhone are making every effort to cut costs. And it appears that for many people, that also means passing up a storage upgrade. 128GB of storage will likely be sufficient for many individuals, so this development is not very surprising. However, keep in mind that upgrading the iPhone 14 Pro from 128GB to 512GB will cost you $300. Thus, the upgrade is rather expensive.
What, therefore, must Apple do in this situation?
They need to determine why customers are not choosing a greater storage option. Maybe there’s no genuine need for that allegedly 2-TB iPhone. A 1TB model already costs $1499 (or $1599 if you choose the Pro Max variant).
This year, Apple is reportedly introducing Pro variants with extra storage as standard. Starting at 256GB, this is intended to support the speculation that the iPhone 15 Pro and iPhone 15 Pro Max will increase in price to $1,099 and $1,299, respectively. It might assist in solving the issue. But let’s clarify the situation. Apple’s financial situation is stable. Additionally, they are not in need of money. A single product’s $39.67 billion in revenue in just 3 months is not a terrible thing.
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