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© Apple Electronics Production | June 09, 2010

Apple: only 2 smartphone models at a time

With its iPhone line, Cupertino-based electronics giant Apple has successfully maintained its Average Selling Price (ASP) through offering enhanced features, writes market researcher iSuppli.
The attractiveness of these enhanced hardware and software features is key to stimulating sales of the latest handset while maintaining consistent pricing over time. When a new model is introduced, the price of the previous handset in the line is reduced. The market researcher believes that component price erosion allows this price reduction. This marketing system has also offered Apple a higher leverage in sourcing.

“Apple differentiates itself from its competitors by maintaining a mobile handset product portfolio that is limited to only two models at a time,” said Steve Mather, principal analyst, wireless, for iSuppli continues.

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