Following the "Gather Round" event earlier this month, Apple, Inc. AAPL unveiled its most expensive — yet most advanced — repertoire to date. The tech giant launched the iPhone XS, XS Max and XR in Cupertino.
Loup Ventures surveyed 50 Apple customers outside of five U.S. stores and outlined the demand customers reported for the newest line of iPhones.
The Products
At the 5th Avenue store in New York, there were roughly 400 customers in line, and more than 70 percent were replacing phones that are only one year old, Loup Ventures Managing Partner Gene Munster said in a blog post.
Munster anticipates the iPhone XR will account for 38 percent of iPhones sold, compared to 9 percent for the iPhone XS and 12 percent for the XS Max.
“Customers are more interested in the Xs Max this year than they have been interested in plus-sized phones in the past,” Munster said.
“Our confidence in our overall iPhone ASP of $791 for FY19 increased today, given 70 percent of customers we surveyed were buying the Xs Max. We were expecting 55 percent, which is consistent with a 54-percent average uptake of the Plus models from iPhone 6, 6s, 7 and 8.”
Purchase Trends
Only 3 percent of iPhone XS Max buyers are opting for the largest, 512 GB capacity model compared to an average of 37 percent in the past, according to Loup's survey. This data might reflect the price jump, as the highest-capacity XS Max retails for $1,449.
The 71 percent of customers trading in new phones compares to an average of 43 percent over the past five iPhone cycles, Munster said.
“We see this as a mixed data point," he said.
On the positive side, the figure could point to a shorter upgrade cycle, particularly for the most loyal users, Munster said. On the negative side, he said demand for the most expensive iPhones may be coming from the most loyal users rather than the average buyer.
Munster remains optimistic on this year’s release and said the upgraded display sizes should incite positive unit growth in 2019. Apple shares were were up 2.13 percent at $225.11 at the time of publication Thursday.
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Photo courtesy of Apple.
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