iPhone Average Selling Price Remains Steady Even With Free 3GS Offer

Earlier this week, Apple reported its best quarterly earnings ever, taking in more than $46 billion over three months. 53% of that revenue was from the sale of 37 million iPhones, at an average selling price of nearly $660. This ASP is particularly impressive, considering this is the first quarter that Apple has sold a "free" iPhone in the U.S. -- the iPhone 3GS is available for free to new two-year contract signers on AT&T.

iphoneasp
Apple's iPhone ASP has remained fairly consistent, hovering between $622 and $660 for most of the phone's lifespan. With Apple offering their cheapest iPhones yet this quarter, some analysts wondered if that would have a negative effect on the iPhone's ASP. It seems that demand for the 64GB iPhone 4S -- the most expensive iPhone yet at $849 -- has easily offset the cheaper iPhone 3GS and 4 models.

iphonesalesbreakdown
All Things D reports estimates from Consumer Intelligence Research Partners that claim 89% of iPhone purchases in the U.S. were for the iPhone 4S, with only 4% of buyers choosing the iPhone 3GS. More relevant for the discussion above, CIRP estimates that higher-end 4S models sold particularly well, with 21% of 4S purchasers opting for the 64GB model and 34% picking up the 32GB.

Popular Stories

iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive a New Perk

Thursday March 20, 2025 12:01 am PDT by
If you pay for iCloud storage on your iPhone, Apple has a new perk for you, at no additional cost. The new perk is the ability to create invitations in the Apple Invites app for the iPhone, which launched in the App Store last month. In the Apple Invites app, iCloud+ subscribers can create invitations for any occasion, such as birthday parties, graduations, baby showers, and more. Anyone ...
Generic iOS 19 Feature Mock

iOS 19 Coming in June With These New Features

Thursday March 20, 2025 2:04 pm PDT by
While the first iOS 19 beta is still more than two months away, there are already plenty of rumors about the upcoming software update. Below, we recap the key iOS 19 rumors so far. visionOS-Like Design In January, the YouTube channel Front Page Tech revealed a redesigned Camera app that is allegedly planned for iOS 19. According to Front Page Tech host Jon Prosser, the Camera app...
apple wallet drivers license feature iPhone 15 pro teal 1

Apple Says iPhone Driver's Licenses Coming to These 8 U.S. States, But Rollout Remains Slow

Wednesday March 19, 2025 6:55 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly. It has been three and a half years since Apple first announced the...
Windows Vista

Apple Might Be Having Its Windows Vista Moment, Says Analyst

Thursday March 20, 2025 6:52 am PDT by
Is Apple experiencing a "Vista-like drift into systemically poor execution?" That was a question posed by well-known technology analyst Benedict Evans, in a recent blog post covering Apple's innovation and execution, or seemingly lack thereof as of late. He is referring to Microsoft's Windows Vista operating system, which was widely criticized when it launched in 2007 due to software bugs,...
iPhone 17 Pro Render Front Page Tech

Latest iPhone 17 Pro Dummies Highlight Apple's New Part-Glass Design

Thursday March 20, 2025 5:27 am PDT by
Seasoned leaker Sonny Dickson has shared more dummy models of Apple's upcoming iPhone 17 series, with the latest lot revealing a noticeable shift in Apple's iPhone Pro model design that goes beyond the much-talked-about new rear camera bar. Dickson points out that the iPhone 17 Pro dummy models feature an outlined area on the back, beginning just below the camera module and extending to the...
iOS 18

Top 5 New Features Coming in iOS 18.4

Friday March 21, 2025 3:26 pm PDT by
We're not getting new Siri Apple Intelligence features in iOS 18.4 as expected, but the upcoming update does have quite a few new additions that will be worth upgrading for. We've rounded up the five best features to look forward to, and if you're not running the beta, you can expect to get access to these in early April. Priority Notifications If you have an iPhone or iPad that supports...
airtag orange

Apple's Next Product is Likely an AirTag 2 With These New Features

Thursday March 20, 2025 2:30 pm PDT by
Following the introduction of the iPhone 16e, new iPads and Macs, and some new accessories over the past month, what will Apple's next product announcement be? Based on rumors, a second-generation AirTag item tracker is likely next up. Last year, Bloomberg's Mark Gurman reported that a new AirTag would be released around the middle of 2025. More recently, a leaker known as Kosutami claimed...
airpods pro 2 gradient

AirPods Pro 3 Launch Now Just Months Away: Here's What We Know

Tuesday March 18, 2025 9:13 am PDT by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as excellent for...
iPhone 17 Air Fanned Feature

First iPhone 17 Air Case Has Camera Bar, Camera Control Button Cutouts

Wednesday March 19, 2025 5:29 am PDT by
Serial leaker Sonny Dickson today shared an image of what he claims is a first look at a third-party case for Apple's iPhone 17 Air. "If you didn’t know an Air was coming, you'd swear it was a Google Pixel case," he said. Case manufacturers often obtain design specifications of upcoming iPhone models before their release by collaborating with Apple through official partnerships or...

Top Rated Comments

Chupa Chupa Avatar
172 months ago
amazing, since pundits initially claimed that the iPhone wouldn't sell at such a high price!

.
Well in all honestly, the original iPhone which was sold @ $499 and $599 did not sell all that well after the initial launch. It was only when Apple dropped the price a couple months after launch that sales started to ramp up. If Apple (Steve Jobs) had been obstinate on price the iPhone may not be the Smartphone leader it is today, but I think Jobs learned that lesson w/ the Cube.
Score: 7 Votes (Like | Disagree)
Mattsasa Avatar
172 months ago

------------------------------------------------------------------
6 year-old daughter, 3 year-old daughter, babygirl 3 to arrive in April 2012. These are my real most valued possessions.

I just wanted to say I loved your signature
Score: 6 Votes (Like | Disagree)
AJH1993 Avatar
172 months ago
I think it's great how well the 4S sold, especially since iPhone 4 owners are most likely still in contract. As an Android user, I am pretty impressed with the 4S(Camera, build quality, etc.) Might even consider asking my employer for the 4S. Well done, Apple.

I think the iPhone sells well because it can be recognized as a device similar to the iPod, and it has the Apple brand. While us on here just love the product, people not familiar with Android or Windows Phone turn to Apple because they're well-recognized
Score: 5 Votes (Like | Disagree)
gnasher729 Avatar
172 months ago
Roughly 60% of iPhone sales are outside the United States of America. Subsidized handsets are not the norm in most international markets.
I really disklike this being called "subsidized". No phone is subsidized or free. You buy a phone with a contract, they give you a huge lone that covers most of the purchase price, and you pay the loan back every month at an enormous interest rate as part of your monthly fees.


Wow, 89% of purchases of iPhones in the US were the iPhone 4S? Just imagine when the iphone 5 comes out
I suppose the percentage will go down a lot, if the iPhone 5 is any good.
Score: 3 Votes (Like | Disagree)
Doctor Q Avatar
172 months ago
Consumers apparently favor the latest features over discounts. I'm surprised it's so lopsided toward the iPhone 4s, but perhaps I shouldn't be.
Score: 3 Votes (Like | Disagree)
ForzaJuve Avatar
172 months ago
Hard to resist

It's hard to resist buying the 4S even if there is an older version for free available. That may also explain why people would rather buy an iPhone versus another brand (possibly cheaper) smartphone. The iPhone 4S remains the top of the line within and between brands.

------------------------------------------------------------------
6 year-old daughter, 3 year-old daughter, babygirl 3 to arrive in April 2012. These are my real most valued possessions.
Score: 3 Votes (Like | Disagree)