Apple Hits New High in iPhone Average Selling Price - in an Unlikely Quarter

Traditionally the March quarter has seen the Average price of an iPhone sold in the US decline, after early-adopters upgrade to premium models in the first few weeks after launch in the September quarter and the first full quarter of availability in the December quarter. This most recent quarter is an interesting exception.

Both conventional wisdom and historic data shows that later buyers of new iPhones are more value oriented, shying away from the most expensive models. The weighted average retail price of iPhones sold in the US (US-WARP) has declined in the March quarter every year since we started calculating it in 2015.

US-WARP for the March 2023 quarter hit a new high of $988 (Chart 1). The average iPhone purchased in the US is that close to $1,000. Of course, trade-ins and other promotions allow many iPhone buyers to spend considerably less than that, but they are taking home phones with an average sticker price of almost $1,000.