Echoing earlier reports, market research firm TrendForce said Tuesday that Apple is increasing production of the premium iPhone 14 Pro and flagship iPhone 14 Pro Max and cutting back production of iPhone 14 Plus to reflect consumer demand and preference for top-of-the-line iPhones.
The share of more expensive iPhone 14 Pro series has increased to 60% of the total output from the initially planned 50%, and it could rise to 65% in the future, the report said.
Apple’s focus on high-end models may help it counter the softness in smartphone sales. In the thick of the chip crisis, Apple’s Pro and Pro Max premium tier of devices, which have been strong sellers, helped the company push margins higher.
Analysts have in the past said iPhone 14’s Pro and Pro Max versions were selling at a brisk pace… Apple was the only vendor in the top five to register a growth in shipments in the third quarter, improving its share of the global smartphone market to 18% from 15% a year ago, according to research firm Canalys. The increase in share came as the overall smartphone market shrank 9%, Canalys said.
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.
Simply fine tuning the mix. Happens every single year. When you're considering spending $899, you might as well go Pro. Great news for Apple's iPhone ASP.
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This is all proceeding as our rather flawless crystal ball 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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