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Old iPhones Are Collapsing The iPhone’s Average Selling Price, And Maybe iPhone Profit Too

Old iPhones Are Collapsing The iPhone’s Average Selling Price, And Maybe iPhone Profit Too

Sales of the iPhone 4S and iPhone 4 are eating into the iPhone 5.

Apple’s iPhone penetration strategy is to not release a lot of conflicting models, but to drop the price on previous iPhone models every time the new one comes out.

Right now, for example, Apple sells the iPhone 5 starting at $199 on contract, the iPhone 4S starting at $99 on contract, and the iPhone 4 with a two-year contract. In this way, Apple can sell an iPhone to anyone, regardless of their income level.

This strategy might be leading to negative repercussions for Apple, though, at least according to a new report, which suggests that Apple is proportionally selling considerably fewer iPhone 5 units during launch than they sold iPhone 4S and iPhone 4 units during their launch window.

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