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Most of us would agree that iPhones seem to be getting more expensive every year. However, the well-known analyst Horace Dediu looked at the numbers from a different angle and contradicts the statement.

Analytics Horace Dediu has a long-term focus on the technology sector and is known for its financial analysis regarding Apple. Now it comes with some interesting economic statistics regarding iPhone prices. Surprisingly, they claim that the price of iPhones is not increasing that much.

iPhone 11 Pro vs first iPhone 2G FB

In the graph below, we can see the price levels in which the first generations of the iPhone up to the current ones are included. You can still see the price increase. So why does Dediu claim otherwise?

The prices in the graph do not take inflation into account. In 2007, the original iPhone cost $600, which would be roughly $742 at today's prices. It's still a significantly smaller amount than what you will pay for the iPhone 11 Pro Max.

But Dediu points out that it is important to monitor the so-called average selling price, i.e. ASP (average selling price). Data from this year is not available, but prices have not moved much since 2018. ASP reflects the price at which the average iPhone user buys. And he does not necessarily reach for the highest models, often quite the opposite.

Rising iPohne prices

Apple Watch more widespread than Macy within two years

ASP is still between $600-$700. In other words, Apple sells more and more expensive smartphones, but because it also keeps older models in the offer, users often choose "cheaper" and "more affordable" variants. For illustration in the Czech Republic, we can imagine many users who bought iPhone SE.

The overall range of iPhones is related to this. It is constantly growing, and if we include individual models, including storage capacity, Apple offered 17 different iPhone models in February of this year. Which is an incredible increase.

In his tweet, Dediu also contradicted the claim that the splitting of the portfolio would not have happened under Jobs. Just remember the varied offer of all kinds of sizes of iPods, which were not only in different models, but also in disc sizes.

In the last tweet, he added that the Apple Watch will surpass the user base of Macs within two years at the latest. Although macOS is doing best in history, within two years more users will have watchOS devices on their wrists than ever with macOS on their desktops.

Source: Twitter

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