According to Andy Perkins, the Societe General Analyst, the sale of iPhone 5S is much better than it was expected and this sale is slowing down the sale of iPhone 6 and 6 Plus.
It seems that the demand for the older model iPhone 5S is increasing, the sale of total units in Q2 has increased 20% from 10% of Q1 Fiscal year 2015. Andy Perkins says in a news report that this thing is really unimaginable. Usually the demand of older models gets decreased with the new models launch in market. But this observation is little puzzling.
The data based on which Perkin is analyzing this thing comes from handset exports of Pegatron and Hon Hai, two handset manufacturers that are contracted by Apple.
Apple could face problem if Perkin is right because the price of iPhone 5S is low than iPhone 6 and 6 Plus. It is 100$ cheaper than iPhone 6 and 200$ cheaper than iPhone 6 Plus.
With the increased sales of 5S, the dollar is also getting stronger, so it could affect the ASP (average selling price) of iPhone. According to Andy Perkins the ASP could get dropped to 651$ from 687$ in the Q1. This is not a new thing, it happens every year. The ASPs of iPhone remain strong in holiday quarter and it drops in March quarter. Even if the ASP drops to 651$ as Perkins says, then also it is going to be one of the best selling prices of Apple in years.
Perkins also says that trouble is coming for Apple as there is very few chance to grow the sales of iPhone after the blockbuster launch last year. The iPhone 6 came with larger screen than 5S which increased the sales to a great extent. There is no alternate easy way for Apple to boost the sale.
When it comes about Apple Watch, Perkins says that this Apple device will not be able to change the market for at least next 12 months.
Source via- Business Insider