Here’s proof that consumers are willing to spend more on an iPhone

With price starting at USD$999 or RM5,149 in Malaysia, the iPhone X is the most expensive iPhone yet. In the last quarter, Apple had managed to sell slightly over 1 million more iPhones year on year and there were reports that most of these sales are coming from their older iPhone models that were offered at a discount.

The iPhone 8/8 Plus duo had gone on sale at the end of September, while the iPhone X only hit the market in the first week of November. Despite recent reports that the iPhone X isn’t doing well, Apple had recorded their highest revenue yet for their fiscal 2018 first quarter.

Overall, Apple had recorded a revenue of US$88.23 billion which is a 13% increase year on year. For the iPhone alone, they have sold 77.31 million units with a revenue of US$61.58 billion. Despite selling 974,000 fewer iPhones compared to Q1 2017, the Cupertino company managed to get over US$7 billion of revenue. It’s pretty obvious that Apple is making more money per unit sold and it’s all because of the iPhone X.

In their official press release, Tim Cook said that this is their highest revenue ever from a new iPhone and the iPhone X had surpassed their expectations. He added that the iPhone X has been their top-selling iPhone every week since it began shipping in November.

If we take a look at their previous quarterly data, their average revenue per unit usually hovers around the US$680-690 mark for Q1 in the past few fiscal years. In the last quarter, they did an astonishing US$796 per unit which is US$100 than before. Looks like having a higher price tag isn’t a big hurdle for Apple and there’s little reason why Apple should be cutting down on production for the iPhone X.

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Alexander Wong