This coming Friday, Apple iPhone XR will be launched. According to Robert Cihra, who is struggling as an analyst for Guggenheim Securities, the release of the cheapest 2018 iPhone will have a negative effect on one of the most important calculations analysts following Apple are watching. It is the average selling price (ASP) on the iPhone. Last year, Apple raised the high price of iPhone X to an ASP well over $ 700 from 2016 $ 651.
But Cihra says that this ASP growth will not happen again for fiscal policy 2019 due to the $ 749 launch price on iPhone XR. In analyst talk, the device is what they call "ASP dilutive." The low price of the phone coupled with just the right mix of features is expected to remove sales from the higher priced iPhone XS and iPhone XS Max. But Cihra adds that the iPhone XR can only attract the business from those who want to upgrade from their older iPhone 6, iPhone 6 and iPhone 7 models. He sees the LCD screened device that lasts over last year's iPhone 8 sales by 50%.
In fact, the analyst expects the iPhone XR in the current quarter to represent 40% of iPhone sales, increasing to 50% for fiscal second quarter ending in March. He says that the most expensive device, the iPhone XS Max, will continue to outsell the iPhone XS with a 3-1
The analyst looks for Apple to report sales of 47 million phones for the fourth quarter ended at the end of last month. That would be a 1% gain the following year. For the holiday quarter, he expects Apple to call 80 million iPhones for a 3% gain over last year. ASP should rise by 24% compared with the quarter in September, and return to 6% for the current quarter. He also says that Apple Watch, paced of the new Series 4, will be part of Apple's fastest growing "Other Products" category with 38% growth in 2018 and another 24% in fiscal policy in 2019.
As for Apple iPad, Cihra expects that for Apple's fiscal fourth quarter, which ended in September, transfers over the year increased over 1%. Revenues for services are estimated to have increased 14% to $ 9.7 billion in the same three month period.