After 2 years of iPhone mini models and 3 years of iPhone Plus models, Apple just launched iPhone Air, which is also priced between the regular iPhone and iPhone Pro lines just like the iPhone Plus. This marks the end of the size up&down line that spins off regular iPhone.
A few years ago, when Apple ended the iPhone mini line, it was rumored to be due to bad sales numbers, which makes sense. Smaller phone parts cost more to make, and the lower economies of scale drive up the cost further. Not to mention, the mini phones are also priced lower than regular iPhones. I guess, finance-wise, it doesn’t make any sense for Apple.
But it’s interesting to see the Plus line also got axed this year. By logic, that model could have had a higher margin with higher prices and lower costs by sharing parts with other models. It also fits perfectly in the price gap if you compare the price differences between iPhone 16 models and iPhone 17 (and iPhone Air) models.
1199 USD | iPhone 16 Pro Max | iPhone 17 Pro Max |
1099 USD | - | iPhone 17 Pro |
999 USD | iPhone 16 Pro | iPhone Air |
899 USD | iPhone 16 Plus | - |
799 USD | iPhone 16 | iPhone 17 |
Let’s take a look at some more data.
If we look at Apple’s 10-K filings from previous years, the introduction of iPhone Plus since the iPhone 14 generation actually didn’t generate much more revenue compared to the years when Apple had the iPhone mini. Even in its own notes, Apple says “lower net sales of non-Pro iPhone models, partially offset by higher net sales of Pro iPhone models.” in the 2023 10-K filing.
iPhone Revenue (in billions USD) | Annual Report 10-K Note | iPhone Models | |
2024 | 201 | iPhone net sales were relatively flat during 2024 compared to 2023. | iPhone 16 |
2023 | 201 | iPhone net sales decreased 2% or $4.9 billion during 2023 compared to 2022 due to lower net sales of non-Pro iPhone models, partially offset by higher net sales of Pro iPhone models. | iPhone 15 |
2022 | 206 | iPhone net sales increased during 2022 compared to 2021 due primarily to higher net sales from the Company’s new iPhone models released since the beginning of the fourth quarter of 2021. | iPhone 14 |
2021 | 192 | iPhone net sales increased during 2021 compared to 2020 due primarily to higher net sales from the Company’s new iPhone models launched in the first quarter and fourth quarter of 2021 and a favorable mix of iPhone sales. | iPhone 13 |
2020 | 138 | iPhone net sales decreased during 2020 compared to 2019 due primarily to the absence of new iPhone models in the fourth quarter of 2020 and the weakness in foreign currencies relative to the U.S. dollar, partially offset by the introduction of iPhone SE in the third quarter of 2020. | iPhone 12 |
2019 | 142 | iPhone net sales decreased during 2019 compared to 2018 due primarily to lower iPhone unit sales. | iPhone 11 |
2018 | 167 | iPhone net sales increased during 2018 compared to 2017 due primarily to a different mix of iPhones resulting in higher average selling prices. iPhone net sales increased during 2017 compared to 2016 due to higher iPhone unit sales and a different mix of iPhones with higher average selling prices. The weakness in foreign currencies relative to the U.S. dollar had an unfavorable impact on iPhone net sales during 2017. | iPhone Xs |
Combining the revenue data with actual device shipment quantities, it’s a logical assumption that the Plus model didn’t really drive up overall iPhone sales, and that it didn’t take much market share from competitors. In turn, it might be cannibalizing the more expensive Pro and Pro Max models, thanks to its bigger screen and battery. If, in those years, Apple hadn’t introduced a Plus model, those who would upgrade their iPhone anyway would probably have opted for a Pro or Pro Max, which would have helped Apple with its revenue and average sales price.
Source: Counterpoint
This year, the launch of iPhone Air, which has a bigger 6.5” screen—larger than both iPhone 17 and iPhone 17 Pro—could have resulted in more conflict with iPhone 17 Plus (if there were one). This is something that iPhone portfolio management and Apple management don’t want to see.In a mature smartphone market, it needs to keep exploring new niche markets or channels of revenue instead of having its own portfolio fight itself.
The new portfolio this year actually makes a lot of sense. With iPhone Air costing 100 USD more than the previous iPhone 16 Plus, and iPhone 17 Pro costing 100 USD more than the previous iPhone 16 Pro, the new portfolio would definitely drive up the average sales price. Eventually this would also bump up iPhone revenue, assuming the same amount of people choose to upgrade their phone this year—which is probably gonna happen with the new design languages on Air and Pro models.
Adios, iPhone Plus! Hola, a strong year for iPhone sales!