Apple is cutting iPhone 14 Plus production orders with assemblers as iPhone 14 Pro models prove to be the most popular, DigiTimes reports Thursday.
According to the report, several supply chain makers and channel operators have confirmed that they received notification from Apple to cut iPhone 14 Plus production by around 40 percent. Apple is believed to be shifting production away from the non-Pro models to make more iPhone 14 Pro and iPhone 14 Pro Max devices, as suggested by increased component shipments.
As a result, DigiTimes‘ sources indicated that total shipments of the iPhone 14 Plus will likely be revised downward to around 10 million units for 2022.
MacDailyNews Take: For perspective (and a laugh), Google peddles an average of 4.6 million Pixel phones per year.
Despite the drop in orders, related shipment ratio adjustments will mean that total iPhone 14 series shipments in 2022 will likely maintain at 85-90 million units, according to today’s report.
MacDailyNews Take: Again, this is simply Apple fine tuning the mix. Happens every single year at multiple times per year. This time it’s toward higher-prices premium Pro models which is obviously great news for Apple’s iPhone ASP and iPhone revenue.
When you’re considering spending $899 – $1199 for an iPhone Plus, you might as well go Pro.
Anyone selling Apple shares based on this “news,” does not understand the company. Only invest in companies that you understand.
This is all proceeding as we 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
Apple iPhone mix is easily going to be the strongest ever. Do not be surprised with the reports that Apple has “cut iPhone 14 orders,” meaning iPhone 14 and iPhone 14 Plus. The company will likely be increasing iPhone 14 Pro and iPhone 14 Pro Max orders to reflect the strong mix which bodes very well, of course for Apple’s iPhone average selling price (ASP). – MacDailyNews, September 14, 2022
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