Even as telecom companies are enticing customers to purchase a new Apple Inc. (AAPL) iPhone by offering healthy incentives, the average selling price for the phone will be higher in the second half of 2018 than analysts at Nomura anticipated.
The firm's tracking suggested that the average selling price (ASP) for the iPhone will be between $800 and $830 in fiscal 2019, up from the firm's initial estimate of $780 and Wall Street's consensus estimate of $757.
International pricing appears to be a tailwind for the device's overall ASP.
"Int'l ASPs are up low to mid-single digits while the USD rose mid-single digits. In Asia, pricing is up by 4% to 8% vs 3% in the U.S. Europe is roughly similar to the U.S while Brazil increased by ~25%," Nomura analyst Jeffrey Kvall wrote in a note on Monday, Sept. 17.
The firm also noted that promotions from U.S. telecom companies like Verizon Communications Inc. (VZ) and AT&T Inc. (T) have been slightly more aggressive for the iPhone XS and XS Max this year than they were last year for the iPhone 8.
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"The common offer is a credit up to $700 with an additional line of service. Sprint (S) on the other hand is offering a free iPhone XS with eligible trade-ins. T-Mobile (TMUS) is also offering a $300 credit with eligible trade-ins," Nomura noted.
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