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

iOS 26 on Three iPhones

Here's When to Expect the iOS 26 Public Beta

Tuesday July 15, 2025 11:07 am PDT by
Apple previously announced that a public beta of iOS 26 would be available in July, and now a more specific timeframe has surfaced. Bloomberg's Mark Gurman today said that Apple's public betas should be released on or around Wednesday, July 23. In other words, expect the public betas of iOS 26, iPadOS 26, macOS 26, and more to be available at some point next week. Apple will be releasing...
iPhone 17 Colors

All 15 New iPhone 17 and iPhone 17 Pro Colors Revealed in Latest Leak

Wednesday July 16, 2025 6:50 am PDT by
We may finally have a definitive list of all color options for the iPhone 17 series, ahead of the devices launching in September. MacRumors concept In a report for Macworld today, Filipe Espósito said he obtained an "internal document" that allegedly reveals all of the color options for the upcoming iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max models. The report includes ...
Apple Watch Ultra 2 Complications

Apple Watch Ultra 3: What to Expect

Sunday July 13, 2025 10:30 am PDT by
The long wait for an Apple Watch Ultra 3 is nearly over, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the Apple Watch Ultra 3:Satellite connectivity for sending and receiving text messages when Wi-Fi and cellular coverage is unavailable 5G support, up from LTE on the Apple Watch Ultra 2 Likely a wide-angle OLED display that ...
Apple Hornsby

Apple Store Near Sydney Permanently Closing Later This Year

Monday July 14, 2025 6:14 pm PDT by
Apple today said its store at the Westfield Hornsby shopping mall, in Hornsby, Australia, will be permanently closing in October. Apple Hornsby In a statement shared with Australian tech news website EFTM (via Reddit), Apple said that it has decided not to renew its lease at Westfield Hornsby. Apple said all affected retail employees will be given the opportunity to work at Apple's nearby...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 16 New Features

Friday July 11, 2025 12:40 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are only two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:A redesigned Dynamic Island: It has been rumored that all iPhone 17 models will have a redesigned Dynamic Island interface — it might ...
Foldable iPhone 2023 Feature Homescreen

Foldable iPhone's Thickness and Price Range Detailed in New Reports

Wednesday July 16, 2025 11:31 am PDT by
Apple's long-rumored foldable iPhone will likely have a starting price between $1,800 and $2,000 in the U.S., analysts at investment banking firm UBS said this week. If so, the foldable iPhone would cost more than a MacBook Pro, which starts at $1,599. With a starting price of at least $1,800, the foldable iPhone would be the most expensive iPhone model ever released, topping the Pro Max at...
iPhone 17 Pro Dark Blue and Orange

Ranked: The Best Features Rumored for the iPhone 17 Lineup

Wednesday July 16, 2025 4:17 pm PDT by
We have just under two months to go until the debut of Apple's iPhone 17 models, and rumors have been ramping up in recent weeks. We went through everything we know so far, pulling out the most exciting rumors and highlighting some other changes that aren't going to be so great. Top Tier Ultra Thin iPhone 17 Air - The iPhone 17 Air is 2025's most exciting iPhone rumor, because it's the...

Top Rated Comments

Chupa Chupa Avatar
176 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
176 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
176 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
176 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
176 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
176 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)