Three of the four iPhone 14 models that Apple unveiled on September 7th are available in stores. And the more expensive iPhone 14 Pro and Pro Max are selling much better than the base model. The latter is especially popular with consumers. Ming-Chi Kuo says the Pro Max accounts for 60% of the total order increase for the Pro models.
The analyst believes that Apple will see the iPhone 14 Pro Max’s popularity as evidence that more differentiation between the iPhone 15 Pro and iPhone 15 Pro Max would be warranted. Or that, put differently, the switch to iPhone 15 Ultra is a no-brainer for the iPhone maker.
Before the iPhone 14 launch, Kuo said that demand will outperform the iPhone 13. Other reports chimed in. They Apple was ready to bump up production beyond the initial 90 million iPhone 14 order for 2022. The iPhone 13 series had a similar launch order last year.
iPhone 14 Pro Max demand is strong
But once Apple unveiled the phones, reports said that the iPhone 14 and iPhone 14 Plus are seeing lackluster demand. The latter will only hit stores on October 7th. Moreover, reports earlier this week said Apple was revising its iPhone 14 production for 2022. Per Bloomberg, Apple will still make 90 million units this year. But that’s 6 million fewer handsets than a previous expectation.
The report also noted that demand for iPhone 14 Pro is stronger than the base models. As a result, Apple is shifting production from cheaper models to premium variants.
Since the iPhone 14 launch, we’ve heard rumors claiming that the iPhone 15 series will bring a new name for the iPhone 15 Pro Max. The handset would be called iPhone 15 Ultra and deliver a few additional features compared to the iPhone 15 Pro.
Reacting on Twitter to the iPhone 14 order reports, Kuo said that Apple ditching iPhone production increase sounded “a little bit weird” to him. Kuo said that Apple plans to switch production from iPhone 14 and Plus to iPhone 14 Pro, Pro Max, and cheaper iPhone 13.
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I reiterate my survey result that shipment forecasts of iPhone 14 Pro and Pro Max will increase by about 10%, benefiting the iPhone ASP/product mix for 4Q22.The demand for iPhone 14 and 14 Plus is obviously lackluster.
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 28, 2022
The analyst further said that iPhone 14 Pro and Pro Max shipments will increase by about 10%, benefiting the iPhone average selling price (ASP) for the December quarter.
Moreover, the order increase for the premium iPhone 14 Pro models and the cheaper iPhone 13 could offset order cuts for the more affordable iPhone 14 variants.
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I predict that Apple will likely offer a positive outlook for 4Q22 at the next earning call assuming iPhone shipments won’t decline significantly starting December.— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 28, 2022
iPhone 15 Ultra seems inevitable
In a separate thread, Kuo said that iPhone 14 Pro Max accounts for about 60% of the total order increase of the Pro models. We don’t have actual figures to put that percentage into perspective. However, the estimate is still impressive.
This indicates buyers are willing to pay more for the iPhone 14 Pro Max. And that’s actually not a bad idea in this economy, considering Apple has not raised prices this year. That is, if you like 6.7-inch iPhones.
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I think this result will encourage Apple to create more differentiation between iPhone 15 Pro Max & 15 Pro to raise 15 Pro Max shipments and enhance the iPhone product mix.— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 28, 2022
The iPhone 14 Pro Max demand will further encourage Apple to differentiate next year’s iPhone 15 Pro models. An iPhone 15 Ultra with extra perks would also help Apple bump up the price of the 6.7-inch model and further raise the iPhone ASP next year.
More iPhone coverage: For more iPhone news, visit our iPhone 14 guide.
Source by bgr.com
