Apple‘s (NASDAQ: AAPL) latest quarterly report has made it clear that the smartphone giant has entered the 5G smartphone era on the right foot, with iPhone revenue jumping 65% year over year in the second quarter of fiscal 2021.
Apple sold nearly $48 billion worth of iPhones during the three months ending March 27, 2021, compared to the prior-year period’s sales of almost $29 billion. Though Apple doesn’t report iPhone unit sales anymore, a look at third-party data from Strategy Analytics indicates how it has become a dominant player in the 5G smartphone market.
Breaking down Apple’s iPhone numbers
Strategy Analytics estimates that Apple sold 57 million iPhones in the first quarter of 2021, which coincides with the company’s fiscal Q2. It had sold 39 million units in the year-ago quarter. The average selling price (ASP) for each iPhone stood at $841 (by dividing Apple’s Q2 iPhone revenue by the estimated number of shipments).
That’s a 13.3% increase from the year-ago period’s iPhone ASP of $742. So, Apple’s massive iPhone revenue growth was a function of an increase in both the ASP and volumes. The 5G-enabled iPhone 12 lineup played a major role in this growth. It gave consumers access to the latest wireless technology at varying price points to suit their pockets, encouraging them to upgrade to the new devices.
Not surprisingly, Apple ended up capturing just over 30% of the 5G smartphone market in the first quarter of 2021 and stood at the top of the sales chart. The company shipped 40.4 million 5G iPhones during the quarter as compared to none in the year-ago period. What’s more, nearly 71% of the iPhones shipped during the quarter were 5G-enabled.
The higher mix of 5G devices helped Apple’s ASP during the quarter. Apple CEO Tim Cook pointed out on the latest earnings conference call that the iPhone 12 is the company’s most popular model, while the Pro and the Pro Max are also registering strong numbers. This isn’t unexpected, as these three were the…