The silver linings amidst crumbling iPhone, iPad and Mac sales

Adrian Kingsley-Hughes

By for Hardware 2.0 |

While Apple narrowly beat Wall Street expectations, the third quarter has been a pretty bad month for hardware sales.

Let's begin with iPhone sales, which at 40.4 million, is the lowest sales Apple has seen since Q4 2014. Not exactly falling off a cliff, but it's an indication of just how weak iPhone sales are, and how badly Apple needs the new iPhone to be a hit.

 More worrying is how far the iPhone average selling price has dropped dramatically this quarter, from $641 last quarter to around $595, which is lower than the $606 that analysts were expecting.

 This suggests that consumers have been opting to buy cheaper/lower capacity iPhones over higher priced models. This is likely to be down to the lower-priced iPhone SE, which Apple is using to entice new users into the iPhone fold (probably in the hopes of selling them a more expensive iPhone down the line).

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What's really worrying though is not only have iPhone sales gone weak, the safety net that Apple built around the iPad and the Mac is evaporating.

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Things are also pretty grim for the Mac, which sold 4.3 million units. Average selling price continues to hover around the $1,230 mark.

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Another silver lining comes from an unlikely source - the Apple Watch. Based on estimates derived from data crunched by Apple-watching analyst Neil Cybart of Above Avalon, Apple Watch sales are estimated to be in the region of 1.6 million. Assuming an average selling price of around $400, that means that Apple's smartwatch business is now worth some $640 million a quarter.

Chump change next to the iPhone, but indicative of strong growth, especially given that this is still a first-generation device.

 

 

 

 

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