iPhone Storage Upgrades Stabilize, Protecting ASP

We noted earlier how shifts in model sales contributed to a decline in Average Sales Price of iPhones, driven by sales of basic iPhone models. Storage capacity is the other factor that determines ASP. After a notable decline in the prior year, storage upgrades seem to have returned to the historic percentage of buyers.

We estimate a US-WARP, or Weighted Average Retail Price, as a way to understand ASP. We saw US-WARP decrease to $918 in the September 2023 quarter, down from $957 in the year-ago September 2022 quarter.

In the September 2023 quarter, 44% of buyers of all iPhone models upgraded from the base storage available for a given model (Chart 1). This is approximately the same level as in the September 2022 quarter.