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

iphone 16 display

iPhone 17's Scratch Resistant Anti-Reflective Display Coating Canceled

Monday April 28, 2025 12:48 pm PDT by
Apple may have canceled the super scratch resistant anti-reflective display coating that it planned to use for the iPhone 17 Pro models, according to a source with reliable information that spoke to MacRumors. Last spring, Weibo leaker Instant Digital suggested Apple was working on a new anti-reflective display layer that was more scratch resistant than the Ceramic Shield. We haven't heard...
apple watch ultra yellow

What's Next for the Apple Watch Ultra 3 and Apple Watch SE 3

Friday April 25, 2025 2:44 pm PDT by
This week marks the 10th anniversary of the Apple Watch, which launched on April 24, 2015. Yesterday, we recapped features rumored for the Apple Watch Series 11, but since 2015, the Apple Watch has also branched out into the Apple Watch Ultra and the Apple Watch SE, so we thought we'd take a look at what's next for those product lines, too. 2025 Apple Watch Ultra 3 Apple didn't update the...
iPhone 17 Air Pastel Feature

iPhone 17 Reaches Key Milestone Ahead of Mass Production

Monday April 28, 2025 8:44 am PDT by
Apple has completed Engineering Validation Testing (EVT) for at least one iPhone 17 model, according to a paywalled preview of an upcoming DigiTimes report. iPhone 17 Air mockup based on rumored design The EVT stage involves Apple testing iPhone 17 prototypes to ensure the hardware works as expected. There are still DVT (Design Validation Test) and PVT (Production Validation Test) stages to...
Beyond iPhone 13 Better Blue

20th Anniversary iPhone Likely to Be Made in China Due to 'Extraordinarily Complex' Design

Monday April 28, 2025 4:29 am PDT by
Apple will likely manufacture its 20th anniversary iPhone models in China, despite broader efforts to shift production to India, according to Bloomberg's Mark Gurman. In 2027, Apple is planning a "major shake-up" for the iPhone lineup to mark two decades since the original model launched. Gurman's previous reporting indicates the company will introduce a foldable iPhone alongside a "bold"...
iPhone 17 Air Pastel Feature

iPhone 17 Air Launching Later This Year With These 16 New Features

Thursday April 24, 2025 8:24 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the iPhone 17 Air sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iphone 17 air iphone 16 pro

iPhone 17 Air USB-C Port May Have This Unusual Design Quirk

Wednesday April 30, 2025 3:59 am PDT by
Apple is preparing to launch a dramatically thinner iPhone this September, and if recent leaks are anything to go by, the so-called iPhone 17 Air could boast one of the most radical design shifts in recent years. iPhone 17 Air dummy model alongside iPhone 16 Pro (credit: AppleTrack) At just 5.5mm thick (excluding a slightly raised camera bump), the 6.6-inch iPhone 17 Air is expected to become ...

Top Rated Comments

Chupa Chupa Avatar
173 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
173 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
173 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
173 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
173 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
173 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)