MediaTek is planning a Helio X30 in 10nm later this year but news from Taiwan indicates that some key customers didn’t order the new flagship 10 core chip.
One of the main reasons might be the increased competition in the Chinese market and companies cannot afford to have two designs of the same phone with Qualcomm or a MediaTek chip in. The rumor is that Xiaomi, MediaTek’s big customer, might be coming up with its own Pinecone SoC and this will put some additional pressure on MediaTek’s high-end. There might be two Pinecones SoCs targeted at the mainstream and high end market.
LeEco, another big MediaTek customer is going through tough financial times, and was not interested in making big orders. Hope, which is the number one smartphone vendor in China, is usually a big customer. Another big one that usualy goes with MediaTek is the current number 3 in China, Vivo. The number two, Huawei has its own Kirin SoC while the number Four, the fruity Apple has its own SoC.
Oppo is MediaTek’s big hope as is Vivo. Oppo and Vivo are expected to sell 120 million and 100 million smartphones respectively in 2017.
The upcoming Snapdragon 835 SoC is also going to give Mediatek bother. It is shaping up to become one of the best, if not the best phone SoC of all times. MediaTek usually has a pricing advantage over most of its competitors so it might compete against it on price.
This is a TSMC manufactured chip based on the the long relationship that the company has with the biggest chip foundry which is across the street from MedaiTek’s headquarter in Hsinchu, Taiwan. The end result might be the massive cancellation of 10nm wafer orders at TSMC, as there wont be anyone who would want to buy. The timing could not be worse, as this is the first time MediaTek wanted to take the leap of faith and bet on the farm with the latest and greatest 10nm . Now it looks like it will have to cancel a lot of the 10nm orders. Still a few phones with Helio X30 deca core will hit the market.
Japan’s Toshiba Corp wished to receive at least 1 trillion yen ($8.8 billion) by selling most of its flash memory chip business, seeking to create a buffer for any fresh financial problems, a source with direct knowledge of the matter said.
The beleaguered conglomerate was pressured to abandon an initial plan to sell just under 20 percent by its main creditor banks which are worried about potential writedowns that may come on top of $6.3 billion hit to its U.S. nuclear unit, financial sources also said.
Toshiba said last week it is now prepared to sell a majority stake or even all of its chip business, the world’s biggest NAND chip producer after Samsung Electronics Co Ltd, also rocked by the emergence of fresh problems at its Westinghouse unit that have delayed the release of earnings.
The company has not decided on the size of the stake to be sold, preferring to focus on the amount that can be raised but would like to retain a one-third holding as that would give it a degree of control over the business, the source with direct knowledge said.
Its willingness to relinquish so much of the unit underscores not only the depths of its financial woes but also resignation on the part of management to becoming a much smaller company.
The sale “is the best and the only way Toshiba can raise a large amount of funds and wipe out concerns about its credit risk,” said the source, adding that the sale should be completed by the end of March next year.
It wants to restart the sale process as soon as possible and may sell to multiple buyers rather than one bidder with interest already received from investment funds, other chipmakers and client companies, he also said.
A separate person with knowledge of the matter said Toshiba will outline terms of the sale by the end of February, conduct a first round of bids in March and aim to have chosen a preferred bidder or bidders by the end of May. The person also said Toshiba valued the chips business at around 1.5 trillion yen.
A Toshiba spokeswoman said the company cannot comment on the specifics of the sale process. Sources declined to be identified as they were not authorized to speak to the media.
Snap Inc hit the roads of London on Monday promoting its initial public offering with a daring proposition: that it can build hot-selling hardware gadgets and ad-friendly software features fast enough to stay one step ahead of Facebook.
No longer just a purveyor of a smartphone app for disappearing messages, Snap has hired hundreds of hardware engineers, built a secretive product development lab and scoured the landscape for acquisitions as it pursues its newly stated ambition to be “a camera company.”
These efforts, which are aimed at developing hardware and so-called augmented reality technologies, are central to the strategy of a company that is seeking a valuation of up to $22 billion in its early March IPO despite heavy losses and the specter of stiff competition for advertising dollars with a far-larger Facebook.
It is a big gamble and the odds against Snap are long.
There is little precedent for a company with its roots in software and social networking succeeding in the notoriously difficult consumer hardware business. Few U.S. firms aside from Apple have made big profits on hardware, and camera and wearable gadget makers have much lower valuations than Snap is seeking. Once-hot camera start-up GoPro is a cautionary tale: its stock sits 61 percent below its 2014 IPO price.
More broadly, creating new products and features that have mass-market appeal and cannot be readily mimicked is a huge challenge, analysts say.
“It’s worrisome,” said Paul Meeks, chief investment officer at Sloy, Dahl & Holst, which manages more than $1 billion in assets. “Snapchat is going to have to continue to be really innovative and distinctive. It’s going to be very tough to trump Facebook.”
Snap declined to comment for this story.
Snap first signaled its new focus with the September reveal of Spectacles, funky sunglasses with an embedded video camera for posting to the Snapchat app. The company spent $184 million on research and development last year, nearly half its revenue.
The fatal clock timing flaw that causes switches, routers and security appliances die after about 18 months of service is apparently a feature of some Juniper products.
Cisco was the first vendor to post a notice about the problem earlier this month saying the notice covers some of the company’s most widely deployed products, such as certain models of its Series 4000 Integrated Services Routers, Nexus 9000 Series switches, ASA security devices and Meraki Cloud Managed Switches.
Juniper is telling its customers something similar:
“Although we believe the Juniper products with this component are performing normally as of February 13, 2017, the [listed] Juniper products could after the product has been in operation for at least 18 months begin to exhibit symptoms such as the inability to boot, or cease to operate. Recovery in the field is not possible. Juniper product with this supplier’s component were first placed into service on January 2016. Jupiter is working with the component supplier to implement a remediation. In addition, Juniper’s spare parts depots will be purged and updated with remediated products.”
The products in the warning comprise 13 Juniper switches, routers and other products including the MPC7E 10G, MPC7E (multi rate), MX2K-MPC8E, EX 920 Ethernet switches and PTX3000 integrated photonic line card.
So far neither Cisco nor Juniper have blamed Intel for the fault. However, Chipzilla did describe a flaw on its Atom C2000 chip which is under the bonnet of shedloads of net gear.
Intel said that problems with its Atom chip will hurt Intel’s 2016 Q4 earnings. CFO Robert Swan said that Intel was seeing a product quality issue in the fourth quarter with slightly higher expected failure rates under certain use and time constraints.
Swan said that it will be fixed with a minor design fix that Intel was working with its clients to resolve.
Intel had hoped it would see the back of its short-lived low-power Atom chips for servers. They were used in micro servers but also networking equipment from companies.
HPE and Dell are keeping quiet about the clock technology, though both are rumoured to use it. They might be hoping that Intel will come up with a fix so they can pretend it never happened.
Announced officially by AMD and to be held on February 28th at Ruby Skye in San Francisco, the new Capsaicin and Cream event promises “a feature-packed show highlighting the hottest new graphics and VR technologies propelling the games industry forward”.
Streamed live, the event will include the main Capsaicin & Cream part, which will hopefully include a bit more details on the actual lineup of graphics cards based on the new Vega GPU, as well as the Cream developer sessions which promise “inspiring talks focused on rendering ideas and new paths forward, driven by game industry gurus from multiple companies including Epic and Unity”.
The event will start at 10:00 AM PST, while the livestream is scheduled to start at 10:30 AM PST (20:00 CET).
For many, the success of Resident Evil 7 and its atmospheric campaign has offered a glimpse of what a “killer app” for virtual reality might look like; the game that shifts the common perception of VR from an intriguing glimpse of the future, to an essential part of contemporary entertainment. The term will be familiar to anyone who has seen the launch of a new console, but, as a panel of experts discussed today at Casual Connect Europe, VR defies such easy categorization.
The discussion was triggered by nDreams CEO Patrick O’Luanaigh, who was in the crowd to watch a panel that included representatives from Valve and Nvidia. When asked to pin down his definition of the term “Killer App,” O’Luanaigh said, “it’s less about revenue, more something that everybody talks about. A lot of people say that VR hasn’t had that killer game yet.
“If we look to the consoles we might say, ‘You have to have your Mario or your Sonic.’ But do you?”
“There’s lots of cool stuff out there, but nothing that really makes you feel, ‘Oh my god, this is so amazing, I have to go and buy a headset.’ We’re all saying that we want games like that to come, and as budgets go up hopefully that will happen. It’s really about where that game might come from.”
For Chet Faliszek, who has become the globe-trotting representative for Valve’s VR efforts, the very notion of a ‘Killer App’ seemed to belong more to traditional game hardware – the consoles made by Nintendo, Sega, Sony and Microsoft. “We have so few data points to extrapolate from to figure out what this is,” he said. “If we look to the consoles we might say, ‘You have to have your Mario, or your Sonic.’ But do you?”
Faliszek referred to a talk he gave the previous day, in which he suggested smartphones as a more appropriate comparison for VR technology. “What was the killer app for the App Store?” he asked the crowd the previous day. “I would argue it was flexibility; the ability to become different for each person. If you’d have asked me 20 years ago what feature do I most want on my phone, I probably would say something about making phone calls; now I rarely make a phone call.
Faliszek emphasized this point again, and suggested that some of the difficulty analysts have faced in grappling with the VR market relates to this kind of misunderstanding. “That’s why there’s slower growth in virtual reality than other people predicted – the analysts,” he continued. “Whereas I think people in the [VR] industry have the understanding that, if you demo ten individual things, out of those one person would say, ‘Why is this thing in there?’ And the next person would go, ‘That’s the best thing ever.’
“Today’s high-end becomes tomorrow’s mainstream… If you develop for the high-end, you know that’s going to have the longest tail”
“You have these personal reactions… Everybody finds that thing in there that they want to have.”
It was telling that, when asked about the most impressive applications for virtual reality right now, Faliszek listed tools for creativity: Google’s Tilt Brush, and the VR development capabilities offered by engines from Unity and Epic. There is a desire for a fully formed consumer market for VR to hurry up and arrive already, but the truth may be that, even a year after the launch of Oculus Rift and HTC Vive, the space is still best defined by its creators and the broad range of use cases they are attempting to discover.
However, one basic truth was mentioned on several occasions, starting with O’Luanaigh’s original question about the importance of positional head-tracking and motion controls becoming standard in mobile VR. These are core features the current high-end of VR hardware – including, but not limited to, the HTC Vive – but Faliszek also believes this is the smartest target for any developer wanting to reach the largest possible audience.
“If you want to make the most money in VR, you should make [games] for the largest addressable market,” he said. “The largest addressable market right now may be headsets that are rotational only, but they will be museum piece in a couple of years. If you make something that has positionally tracked head and motion controls you can probably still be selling that game years from now – or some version of that. If you did rotational only? Someone has to pull a headset out of the closet to experience that. The shelf life of that product is going to be much shorter.”
Faliszek made a similar point the day before, advising Casual Connect’s attendees that, “today’s high-end becomes tomorrow’s mainstream. If you really want to think about the largest addressable market, it’s not about the number of headsets out there for any one platform. It’s what will become the standard. If you develop for the high-end, you know that’s going to have the longest tail.”
Despite the probable advantage in the number of headset owners, then, mobile VR may have to reach a better technological standard to be a better commercial opportunity. No part of the VR market offers a huge installed base at present anyway, and, as Faliszek pointed out, “a game that works on 5 million [mobile] headsets this year isn’t necessarily going to work on 50 million headsets in a few years’ time.”
It has been reported a few times that Zen and the desktop part Ryzen are a crucial part of AMD’s strategy in the future. The fact that our sources confirm that Ryzen will compete well against Core i7 Extreme edition will definitely help AMD’s stock.
AMD’s John Taylor, Corporate Vice President, Worldwide Marketing at AMD showcased Zen running the CPU at Computex in June 1st 2016 and the stock market reacted favorably to it. Since early January last year, AMD stock grew tremendously from $1.90 USD roughly a year ago to $13.42 USD now. The stock price will definitely rise further.
It can be anticipated that Ryzen will be in high demand and that every single AMD fan will have a desire to get an AMD Zen based Ryzen machine. The reason is simple – people want AMD to succeed and the price will be much more competitive. We have readers in our community who never gave up hope that AMD would once return to its K7 glory Athlon days. Well, Ryzen is the closest to that goal.
AMD will quickly get some desktop CPU market share back, but we anticipate that demand will exceed supply. Wall Street likes what AMD has been doing and it will most likely react very favorably on Ryzen reviews and shipping.
Lisa Su, AMD’s CEO, has already confirmed that you can expect to see Ryzen shipping this quarter and the closest that we heard to a launch date is the first few days of March. It is happening rather soon and this is the single most important launch in the last decade for AMD. Intel is working on a response, but AMD fanboys will embrace the Zen, even if it ends up slightly slower compared to Intel.
The positive financial impact will help AMD becoming more competitive in both CPU and GPU areas, which is great news for the market. Intel has been left almost alone, for long enough and it is about to taste its own medicine.
Samsung sold 76.8 million smartphones in the fourth quarter, giving it a market share of 17.8 percent, but it was just beaten by Apple, which sold 77 million iPhones for a 17.9 percent share, according to figures from market research firm Gartner.
The fourth quarter is usually a strong one for Apple, boosted by holiday sales of the new generation of iPhones it releases each September, said Anshul Gupta, a research director at Gartner.
For Samsung, though, 2016 ended particularly badly, dominated by the fiasco around the recall of its incendiary Galaxy Note7.
Super-phones like the Note7 could have accounted for 10 to 15 percent of Samsung’s smartphone sales in the period before its recall, said Gupta, but Samsung lost more than that: There was also the damage to its brand.
It could bounce back sooner rather than later, though, as it has a new flagship phone coming out at the end of March.
Apple, meanwhile, is expected to wait until September before unveiling new iPhones. This year will mark the iPhone’s 10th anniversary, and the next model is widely expected to be something special, so Apple fans may delay replacing phones until then, said Gupta. That would leave the way clear for Samsung to move back into the lead from this quarter.
That pattern showed up last year too: Although it dominated the fourth quarter, Apple was a distant second over the full year, with market share of just 14.4 percent over the year, far behind Samsung’s 20.5 percent, and the situation was similar the previous year.
The carrier said Tuesday it will have nationwide LTE-M coverage in the U.S. by the middle of this year, six months ahead of schedule. Previously, AT&T had said LTE-M would cover the U.S. by year’s end.
That means everywhere in the country that AT&T has an LTE network, it will also offer LTE-M. By the end of the year, it will have LTE-M across Mexico too, creating a broad coverage area for businesses that operate on both sides of the border.
LTE-M is one of several LPWANs (low-power, wide-area networks) that are emerging to link sensors and other devices to the internet of things. It’s not as fast as the LTE that smartphones use, but it’s designed to allow for longer battery life, lower cost, smaller parts and better coverage. LTE-M has a top speed of around 1Mbps (bits per second) upstream and downstream and a range of up to 100 kilometers (62 miles), including better penetration through walls.
AT&T is part of a wave of mobile operators considering or rolling out LTE-M. Others include Orange in France and SoftBank in Japan. AT&T launched its first commercial trial of LTE-M last October in San Ramon, California, and has since opened another in Columbus, Ohio.
Several companies are already using the network for enterprise and consumer applications, AT&T said. They include Capstone Metering, a supplier of wireless water meters; RM2, which makes storage pallets with sensors for monitoring inventory; and PepsiCo, which is using LTE-M to collect usage data from soda fountains. Consumers can dispense their own blends of soda from these fountains, and PepsiCo uses sensors to keep the fountains stocked and learn what blends are popular.
There are already several emerging LPWAN systems from mobile operators and other service providers. The growing LoRaWAN, Sigfox and Ingenu technologies come from outside the traditional mobile industry.
LTE-M and another technology, NB-IoT, are based on LTE and are designed to run over carriers’ licensed spectrum. They may be the best options for enterprises concerned about interference and security, Ovum analyst Daryl Schoolar said.
The app will roll out soon from app stores for Apple TV, Samsung Smart TV and Amazon Fire TV, the company said in a blogpost on Tuesday.
The blogpost also said users can scroll through their news feed and simultaneously watch videos on their timeline.
The Wall Street Journal reported last month that Facebook was creating an app for TV set-top boxes that would bring the company closer to live video and video advertisements.
Facebook Chief Executive Mark Zuckerberg during a post-earnings call said this month that the company expected a major ramp-up in hiring and other spending during 2017 as it invests in video and other priorities.
The company last year expanded its live video product, Facebook Live – a potential threat to broadcast television.
Industry veteran journalist Kyle Bennet wrote back in December that Intel might launch a CPU powered by Radeon technology. This happens in the middle of the last quarter when Nvidia and Intel’s cross licensing GPU deal is about to expire.
Just recently, Kyle said that there might be a CPU with Radeon coming this year but more important is that from April 1, Intel will not have a valid GPU license from Nvidia or AMD. None of the three companies spoke publicly about a possible GPU licensing deal and as far as Fudzilla is aware Nvidia hasn’t reached a deal with Intel to extend the licensing.
As part of the original deal and the terms and conditions of the patent cross license agreement, Intel agreed to pay Nvidia licensing fees which in the aggregate will amount to $1.5 billion, payable in annual installments, as follows: a $300 million payment on each of January 18, 2011, January 13, 2012 and January 15, 2013 and a $200 million payment on each of January 15, 2014, 2015 and 2016.
The original document states that “Capture Period” shall mean any time on or prior to March 31, 2017 indicating that this is the last date where the license is still valid.
There are a few possible scenarios going forward and one very likely and that Fudzilla suggested a while ago, is that AMD will license its GPU technology to Intel and get some much-needed cash. Nvidia is always the more expensive choice. If you have been following Nvidia and AMD long enough you will recognize the pattern that both PlayStation and Xbox stayed away from Nvidia simply as AMD was the more affordable choice. Good fellow Jen-Hsun Huang, the CEO of Nvidia is all about making more money, something that resulted in a surge in the stock price.
AMD doesn’t want to talk about it. Fudzilla asked many contacts inside the company on and off the record, but no one seems to want to touch this touchy topic. Where there is smoke, there might be fire, one might imply.
The bottom line is that Intel needs a license or it faces a potential lawsuit. If it gets the GPU patent licensing from AMD, Nvidia would probably stay away from potential legal action.
Nvidia and AMD borrow GPU related ideas from each other left and right and center and we are quite sure that they don’t plan to sue each other for the GPU related patents anytime soon.
We would expect to see some announcements related to a potential AMD – Intel deal in the next few months. While many will argue that AMD is hardly going to benefit from it, making Intel a bigger competitor and losing the edge on the GPU performance lead, AMD would be making some additional cash, something that it desperately needs.
Last week, a financial analyst claimed Apple will release three new iPhones with wireless charging capabilities this year, reviving an on-again, off-again rumor about the next-generation iPhone’s capabilities.
The appearance of Apple’s name on the membership list of the Wireless Power Consortium, Qi’s creator, over the last week adds credence to that rumor. Its name was not on the list cached by Google’s search engine last Tuesday.
“After several years of increasing rumor, Apple’s membership with the Wireless Power Consortium points strongly to the expectation that the next iPhone will include wireless charging technology,” said Vicky Yussuff, an analyst at market watcher IHS Technology.
Don’t expect too much, though: That’s pretty much what IHS analysts said about the last iPhone, too.
In fact, Apple’s membership of the WPC may have nothing to do with phones. The magnetic charging adapter supplied with the Apple Watch will charge Qi devices (although the Watch itself is programmed not to work with just any Qi charger, only those supplied or approved by Apple) so membership may just be a delayed recognition of that usage.
Nine in 10 consumers want wireless charging on their next phone, according to Yussuff. The technology is now so widely adopted that it’s no longer something Apple can ignore, she added.
IHS expects around 350 million wireless-chargeable devices to ship this year, in a market largely driven by Samsung Electronics, which has included the capability in its top-of-the-range phones since the launch of the Galaxy S6 in 2015. Samsung also sells wireless charging covers for the older S4 and S5.
Take-Two today reported its financial results for the three months ended December 31, and they paint a mixed picture of the company’s performance for the holiday season.
Speaking with GamesIndustry.biz, Take-Two chairman and CEO Strauss Zelnick touted the company’s holiday slate of releases, mostly updating numbers revealed around Take-Two’s last earnings report. Mafia III has now sold-in approximately 5 million copies, while Civilization VI has surpassed 1.5 million units sold-in. NBA 2K17 has sold-in nearly 7 million units (up about 10% year-over-year), while Grand Theft Auto V continues to move copies, with sell-in now topping 75 million. Its recurrent consumer spending business (virtual currency, microtransactions, and DLC)has also done well, Zelnick said, noting that Grand Theft Auto Online posted a record number of players in December.
Despite some of those gaudy numbers, the quarter was not an unqualified success. The publisher reported GAAP net revenues of $476.5 million, up 15% year-over-year but near the low end of its $475 million to $525 million guidance. Additionally, Take-Two’s guidance called for a net income of $17 million to $30 million, but it ultimately posted a net loss of $29.9 million for the quarter.
“I know it’s a bit clouded by GAAP reporting, which requires us to defer revenues, and requires us to accelerate costs related to those deferred revenues, so we have a mismatch,” Zelnick explained. “It can look like, from a GAAP point of view, that we’re not doing as well as we’re doing from a bookings and cash flow point of view.”
Total bookings for the quarter did indeed jump 51% year-over-year to $719 million, with the aforementioned titles and WWE 2K17 serving as the largest contributors to that number. Bookings from recurrent consumer spending did particularly well, growing 55% year-over-year and making up 23% of the company’s total bookings.
The holiday quarter also saw the release of Take-Two’s first VR efforts, Carnival Games VR and NBA2K VR Experience. The company didn’t provide any performance metrics for those titles, but it’s clear Zelnick wasn’t counting on them to contribute too much.
“We were happy to bring the titles to market because it was a reflection of the fact we have the R&D abilities to address video games in a VR format if and when that’s a meaningful part of the business,” he said. “I have expressed skepticism in the past, and I think that’s been borne out by the fact that the market for VR in video games remains quite small.”
Zelnick also addressed the company’s $250 million acquisition of Social Point, the Barcelona-based mobile developer of Dragon City and Monster Legends. As for how the new studio will be integrated into the company, Zelnick said the goal was more to support them to continue doing what they’ve already been successful doing, while being mindful not to mess with what works.
“What we like about Social Point is they have multiplicity, it’s not just one [hit] and that distinguishes them from a lot of people in this space,” Zelnick said. “And they know how to monetize those hits and interact with their audience. I’m hoping we can help them grow even faster, but minimally, we want to be supportive so they can keep doing what brought them to this place in the first place… the way we tend to integrate new creative acquisitions is we want those companies to retain their identity and their independence, and to continue to do what works in the market.”
That’s not to say the company is abandoning all hope of synergy. Zelnick said he hopes Take-Two can help lend its experience in Asian markets to help Social Point find success in those territories, while acknowledging that Take-Two can probably learn a few things about monetizing in a free-to-play environment that could be brought to bear on titles like NBA 2K Online and WWE Supercard.
While an Nvidia graphics chip seems to be hanging the office laptop’s Outlook, the company has seen its quarterly revenue surge more than 50 percent for the second straight quarter and beat expectations.
Apparently it is seeing rising demand for its graphics chips and strength in rapidly growing areas such as self-driving systems and artificial intelligence.
The company also forecast revenue of $1.90 billion, plus or minus 2 percent, for the current quarter, marginally higher than the $1.88 billion the cocaine nose jobs of Wall Street predicted.
The Revenue in the company’s graphics processing unit businesses that contributes to more than three-quarters to its total revenue rose 57 percent to $1.85 billion in the fourth quarter.
Also, the Revenue from the company’s fast-growing data center business which counts Amazon’s AWS, Microsoft Azure and Alibaba Groups cloud business as its customers has more than tripled to $296 million in the quarter.
The business is also expected to grow sequentially, Nvidia Chief Financial Officer Colette Kress said on a conference call.
Revenue in Nvidia’s automotive business, which produces the DRIVE PX 2 self-driving system used by Tesla Inc, reported a 37.6 percent rise to $128 million.
Analysts had expected revenue of $135.3 million from the business. Nvidia’s total revenue rose to $2.17 billion from $1.40 billion, beating the average analyst estimate of $2.11 billion.
The company’s net income more than tripled to $655 million.
“The nature of the market is also shifting,” said Ben Bajarin of Creative Strategies, in a recent interview. As consumers encounter large-screen smartphones with more frequency — especially ones owned by friends — there’s a bandwagon effect, he explained.
Although the shift to bigger screens has been strongest in China and other Asian markets, the iPhone 7 Plus accounted for a larger proportion of new iPhones sold in the U.S. as well, said Bajarin, citing his firm’s research.
Apple does not separate iPhone sales by market, or even say exactly what percentage of total sales was of the 7 Plus, but CEO Tim Cook did claim that the number was the highest yet for its 5.5-in. model. “We saw especially strong demand for iPhone 7 Plus, which was a higher portion of the new product mix than we’ve ever seen with Plus models in the past,” Cook said during the December quarter’s earning call on Jan. 31.
Even before Apple disclosed iPhone sales — for the December quarter, the Cupertino, Calif. company booked 78.3 million — analysts expected that the average selling price, or ASP, would be up over the same period the year before, in part because of the widespread belief that the iPhone 7 Plus had done better than its 2015 and 2014 forerunners.
That was, in fact, the case: The December quarter’s iPhone ASP was $694.57, a record.
Some credited the iPhone 7 Plus’s performance to the features Apple offered only in the large-screen model, notably Portrait Mode. Bajarin agreed that Plus-only features could be selling points. But they were no guarantee. Those specific to the iPhone 6 Plus and 6S Plus, for example, weren’t enough to make those models as successful as the 7 Plus.
More telling than differences between iPhone models, he said, was the consumer perception of the total package. “The evidence we see from China is that when something [is seen to be] the pinnacle at that moment, that’s when China moves toward that product,” Bajarin said. “So there is some value in keeping interesting and expensive technology as a differentiator.”
Among the features that the supply chain rumor mill has posited for this year’s iPhone, several might appear only in the most expensive model, such as a curved OLED (organic light-emitting diode) display and wireless charging.
Not every analyst concurred with the concept of burnishing the Plus model with extra features if that came at the expense of the smaller-sized models.
“It’s more important that Apple makes [each new generation of the] iPhone durable and powerful,” said Ezra Gottheil, an analyst with Technology Business Research. “That’s recognizing the reality of the market, and justifying what is an increasing price delta.”