Apple’s focus on elevating, differentiating iPhone Pro models is paying off

This year, the iPhone 14 Pro and flasghsip iPhone 14 Pro Max offer an Always-On display, the Dynamic Island, 48MP main camera, telephoto lens, 6x optical zoom, Macro photography, Macro video recording, Apple ProRAW, A16 Bionic, longer battery life, surgical-grade stainless steel, ProMotion, 2000 nits peak brightness, and more that the base iPhone 14 phones do not. Apple’s focus this year on elevating and differentiating the iPhone Pro models is paying off with a higher ASP – meaning more revenue for the company.

iPhone 14 Pro Max
Apple’s flagship iPhone 14 Pro Max

Dan Gallagher for The Wall Street Journal:

The iPhone 14 Pro models in particular seem to be experiencing strong demand, with customers now having to wait a month or longer for their deliveries. UBS analyst David Vogt also estimates that wait time in the U.S. for the large-screen iPhone 14 Pro Max is about 9 days longer than for the comparable model in last year’s iPhone 13 family at the same point in its cycle.

Especially this year, not all iPhones are equal. JPMorgan analyst Samik Chatterjee estimates that the average global wait time for the iPhone 14 Pro is nearly a month longer than for the baseline 14 model.

Apple created the Pro lineup three years ago, offering enhancements such as a more powerful camera and a premium steel casing, but the company took a new step this year by putting its latest mobile processor only into the Pro models—leaving the iPhone 14 with the same chip that powered last year’s iPhone 13 lineup.

Analysts expect combined iPhone unit sales for the September and December quarters this year to be flat with the same period last year, but they also expect a 4% rise in iPhone revenues over the same period, according to consensus estimates from Visible Alpha. That will require a higher contribution from the Pro models than in past years.

MacDailyNews Take: As predicted:

Apple should have been doing this prior, but it’s good to see some additional differentiation between entry-level and “Pro” iPhone which will, of course, tilt more buyers to iPhone Pro models, increasing Apple’s iPhone ASP. The expected removal of the inelegant kludge (notch) in favor of a more refined pill and hole punch design exclusively in the iPhone 14 Pro and iPhone 14 Pro Max will also help differentiate the Pro models from the non-Pro iPhones later this year, moving the mix toward higher-end iPhones.MacDailyNews, July 6, 2022

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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

1 Comment

  1. I really wish MDN would stop talking about the ‘inelegant kludge’. It was necessary at the time and will eventually disappear. ‘Dynamic Island’ is a great start. So MDN – STFU.

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