[NewsSpace=JeongYoung Kim] Despite the reverse growth of the smartphone market due to the economic recession, Apple recorded a good performance that far exceeded expectations. iPhone accounts for a huge portion of Apple's profits to the extent that it is said that "iPhone has done everything."

The secret is that the unusually high sales price compared to the cost plays a big role. The cost of components of the iPhone 14 Pro Max, the best model of the iPhone 14, is around 500,000 won in KRW, drawing attention. The sales price is more than three times higher than 1.7 million won. Already expensive iPhone prices are rising more and more, but customers' love for iPhone remains.

Apple said it performed better than expected despite the economic recession headwinds thanks to the iPhone in the first quarter. Sales of the iPhone increased 1.5% year-on-year to $51.33 billion.

According to market research firm IDC, considering that global smartphone sales fell 15% during the period, the 1.5% increase is a significant achievement. It far exceeded market expectations. Apple CEO Tim Cook said in an interview with CNBC, "The iPhone performed quite pleasantly amid worsening market conditions last quarter."

In particular, profits from the economic recession have improved due to the iPhone's advanced strategy. As demand for high-end models flocked, iPhone 14 Pro Max, the highest-priced model, accounted for 24% of all iPhone sales, and iPhone 14 Pro accounted for 22%.

iPhone's average sales price (ASP) hit an all-time high in the first quarter of this year. It is about three times higher than Samsung Galaxy. The average selling price was 988 dollars (about 1.31 million won), up from 882 dollars (about 1.17 million won) a year earlier.

It is pointed out that one of the secrets of Apple's astronomical profits is that the sales price is high compared to the cost. According to market research firm Counterpoint Research, the cost of purchasing parts for the top model iPhone 14 Promax is around 500,000 won, but the selling price is around 1.7 million won. It's three times the level. It was the secret of Apple's huge profits that hardware manufacturers could not imagine.

Meanwhile, according to Japan's Nikkei, Apple's new wireless earphone "AirPod Pro 2" cost only about $54 (about 70,000 won). The price of AirPods Pro 2 in Korea is 359,000 won, which is about 30,000 won higher than the previous model (320,900 won). It is about 20% of the sales price. The cost of all the components used in the Apple Watch was only about 100 dollars (about 130,000 won) and 25 percent of the sales price of 399 dollars (about 520,000 won).