iPhone, iPad Model Strategies Diverge

Older iPhone Models Sell Well, as iPad Emphasizes Newer, Higher-Priced Ones

Consumer Intelligence Research Partners, LLC (CIRP), today released analysis of the results from its research on Apple, Inc. (NASDAQ:AAPL) for the fiscal quarter that ended June 30, 2018.

CIRP finds that iPhone 8, 8 Plus, and X accounted for 54% of US iPhone sales in the quarter, with iPhone 8 at 13%, iPhone 8 Plus at 24%, and iPhone X at 17% (Chart 1).

  Chart 1: iPhone Models US Sales Mix, Fiscal Quarters

Chart 1: iPhone Models US Sales Mix, Fiscal Quarters

In what is usually a quieter quarter for iPhone sales, the model breakdown is interesting, as older models persisted in popularity. The latest iPhone 8, 8 Plus, and X models accounted for a little more than half of sales, yet last year at this time the then-latest iPhone 7 and 7 Plus accounted for over 80%. And, the iPhone 6S, 6S Plus, and SE grabbed 20% in the past quarter, virtually the same as in the June 2017 quarter, though at lower price points. So, it looks like two-year old legacy iPhones have squeezed the newer models. Still, because Apple increased base storage and boosted prices, we expect Average Selling Price to increase nicely over the June 2017 quarter.

In the iPad product line, the basic 9.7 inch iPad (introduced in March 2017 and recently updated) had the largest share of sales of a single model in both the June 2018 and 2017 quarters, at 31% and 32%, respectively (Chart 2). iPad Pro had 40% of sales, split approximately evenly between the 10.5 inch and 12.9 inch models. iPad mini increased share to 18% in the quarter, up from 11% in the June 2017 quarter as Apple discontinued the smallest iPad Pro model.

  Chart 2: iPad Models US Sales Mix, Fiscal Quarters

Chart 2: iPad Models US Sales Mix, Fiscal Quarters

In the past year, Apple has consolidated the iPad product line, down to four models. Share is distributed pretty evenly among them, ranging from 18% for the mini and Pro 12.9 inch models, to 31% for the basic 9.7 inch iPad. In comparison, Apple now has eight iPhone models, with share ranging from 3% for iPhone 6S Plus to 24% for iPhone 8 Plus. While the least expensive basic 9.7 inch iPad is the biggest seller, iPad Pro models, which are the most expensive, together account for 40% of unit sales.

CIRP bases its findings on its survey of 500 US Apple customers that purchased an iPhone, iPad, or Mac in the US in April-June 2018 period. For additional information, please contact CIRP.