Apple was right, people love expensive iPhones

Apple's gamble that offering more expensive iPhones would result in increased revenue without having to increase sales continues to pay off.
Written by Adrian Kingsley-Hughes, Senior Contributing Editor

Apple's Q4 18 results are out, and the iPhone, services, and "other products" categories all show double-digit percentage growth compared to the year-ago quarter.

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Let's start with the iPhone. Unit sales of 46.8 million fall pretty in line with analyst expectations, but while units are up year-on-year has flatlined at zero percent, revenue over the same period is up a whopping 29 percent.

This has driven up the Average Selling Price to $793, up on the previous quarter ASP of $724, up significantly on the year-ago quarter ASP figure of $618.

​iPhone sales

iPhone sales

Moving to the iPad, and while unit sales decreased by 6 percent to 9.7 million year-on-year, revenue dropped a precipitous 15 percent. This bumped the ASP up slightly to $422, from $410 for the previous quarter, but down significantly on the figure of $468 the year-ago quarter.

People are buying cheaper iPads, quite possibly because the more expensive iPad Pros were all over a year old for the duration of the quarter.

​iPad sales

iPad sales

It seems that Mac sales have once again risen from the grave, hitting 5.3 million, following a couple of weak quarters. ASP is at $1,389, down from $1,433 for the previous quarter, and up slightly from the ASP of $1,331 for the year-ago quarter.

​Mac sales

Mac sales

Apple's revenue from "Other Products," which include AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories, hit $4.23 billion, up 13 percent from the $3.74 billion from the previous quarter, and up a robust 31 percent from the year-ago quarter figure of $3.23 billion.

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