iPhone Average Price Increases $30; iOS Use Reaches 160 Million


Apple Inc. COO Tim Cook has disclosed that over 160 million Apple iOS based devices have been sold up to December 2010. He was speaking at a conference call held to discuss Apple Inc.’s Q1 results. The Apple iOS operating system is used to power a number of Apple products including the iPhone, iPod touch, Pad and Apple TV.

At the conference call, Cook credited the iOS for the tremendous popularity of all Apple mobile products and said that the competition – Google’s Android operating system was unable to replicate its success. “We think that our integrated approach is much better for the end user, because it takes out all of the complexity for the end user, instead of making the end user a systems integrator themselves, I don’t know about you, but I don’t know many people who want to be systems integrators,” Cook said.

The last financial year has seen a tremendous jump in sales figures for Apple’s mobile products with the 100 million sales mark being crossed last June.  The iPhone 4 remains the highest selling iOS based device with over 16.2 million units sold only in the last quarter. Even with such high sales figures, demand for the iPhone 4 still outstrips supply.

The demand-supply mismatch for the iPhone 4 has led to a continuous increase in its average selling price (ASP) from $595 in Q3 2010 to $625 in the current quarter. At the conference call, both Cook and Apple CFO Peter Oppenheimer regretted the company’s inability to meet the total demand for this quarter. The iPhone 4 registered a fantastic 86% sales growth in the December quarter and it now accounts for about 40 per cent of Apple’s net $26.74 billion revenue.

With the recently announced tie-up with Verizon, the company will start selling a CDMA version of the iPhone 4 from February this year leading to a further increase in demand. Commenting on the tie-up with Verizon, Cook said, “We are truly thrilled to be working with the Verizon team, they have built quite a company and earned a great deal of respect from their customers, and some of them have waited a long time to get the iPhone.” Cook also added that the increased demand from Verizon subscribers will prevent any fall in the iPhone 4’s average selling price.

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