According to the general consensus on demand, analysts expectIPhoneXS Max will sell more than the iPhone XS and will cost as much as $1,099, helping to raise the average selling price. On Oct. 22, Rosenblatt Securities said the iPhone XS Max pushed ASP up, three days after Guggenheim's right-hand average price rose 24% from a year earlier.
In a conversation with investors, J.P. Morgan analysts pointed to news that the average price of the iPhone had risen in recent weeks, but investors thought it would be $12 higher than the average price in the fourth quarter of 2017. Meanwhile, JP Morgan expects average earnings per share to increase by $77.
Projected shipments of 46 million iPhones in the fourth quarter of this year could help boost overall revenue to $62.3 billion, slightly above the $60 billion to $62 billion guidance range, partly because of better average selling prices. The gross profit margin is expected to be 38.2%, which is between 38% and 38.5%.
Increasing analysts'confidence in higher average prices comes from tracking a range of Apple suppliers that generate at least 50% of Apple's revenue. The quarterly report at the end of September showed revenue growth for suppliers, which clearly showed strong growth in average iPhone sales prices.