Apple’s iPhone 14 Pro powers 10% YoY revenue growth, 7% YoY ASP growth in Q3

The shift from 4G to 5G smartphones has been led by Apple’s iPhone, which alone makes up for over half of all 5G revenues, according to Counterpoint Research. Apple saw a 10% YoY revenue growth and 7% YoY ASP growth in Q3 2022, contributing to an overall increase in global handset ASP, thanks to strong demand for iPhone 14 Pro and the flagship iPhone 14 Pro Max, which Apple worked to better differentiate from the entry-level iPhones versus previous generations.
Apple’s flagship iPhone 14 Pro Max
Commenting on the 5G effect on ASP growth, Counterpoint’s Senior Analyst Harmeet Singh Walia said in a statement, “At over $80 billion, the revenue contribution of 5G handsets reached an all-time high of 80% of global handset revenues, up from 69% in the third quarter of last year. In the same period, LTE handsets’ revenue contribution fell 10% to $19 billion… Apple saw a 10% YoY revenue growth and 7% YoY ASP growth in Q3 2022, contributing to an overall increase in global handset ASP. This is thanks in part to the launch of the iPhone 14 series as well as the Pro models, especially from the previous generation, doing well.”
Apple’s iPhone 14 Pro/Max power 10% YoY revenue growth, 7% YoY ASP growth in Q3
The global smartphone handset market’s revenue declined 3% YoY in Q3 2022 to just above $100 billion, according to the latest research from Counterpoint’s Market Monitor Service. A 10% YoY growth was seen in the average selling price (ASP) thanks to the premium handset segment’s greater resilience to economic uncertainty. The record shipment contribution (46%) of 5G handsets, which cost five times an average non-5G handset, also added to the ASP and revenue growth. In terms of shipments, the overall handset market saw a 12% YoY decline during the quarter.
MacDailyNews Take: Even before the iPhone 14 range was unveiled, we predicted heavy demand for the Pro models and a stronger iPhone ASP over prior years because Apple was heavily rumored to be better differentiating the 14 Pro/Max over the base models.
Apple should have been doing this prior, but it’s good to see some additional differentiation between entry-level and “Pro” iPhone which will, of course, tilt more buyers to iPhone Pro models, increasing Apple’s iPhone ASP. The expected removal of the inelegant kludge (notch) in favor of a more refined pill and hole punch design exclusively in the iPhone 14 Pro and iPhone 14 Pro Max will also help differentiate the Pro models from the non-Pro iPhones later this year, moving the mix toward higher-end iPhones. – MacDailyNews, July 6, 2022
Apple iPhone mix is easily going to be the strongest ever. Do not be surprised with the reports that Apple has “cut iPhone 14 orders,” meaning iPhone 14 and iPhone 14 Plus. The company will likely be increasing iPhone 14 Pro and iPhone 14 Pro Max orders to reflect the strong mix which bodes very well, of course for Apple’s iPhone average selling price (ASP). – MacDailyNews, September 14, 2022
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