Reuters – Apple Inc (AAPL.O) is reducing production of the iPhone 14 Plus while expanding production of the more costly iPhone 14 Pro owing to lacklustre demand for the mid-range model, according to market research company TrendForce.

According to the study, the more costly iPhone 14 Pro series already accounts for 60% of overall output, up from 50% originally envisaged, and might reach to 65% in the future.
Apple did not immediately reply to a request for comment from Reuters.

Apple’s emphasis on high-end models may help it combat lacklustre smartphone sales. During the chip crisis, Apple’s Pro and Pro Max premium tier handsets, which were good sellers, aided the business in pushing margins upward.

According to the TrendForce analysis, rising interest rates in the United States might limit consumer spending, hurting demand for iPhones in the first quarter of 2023. This might result in a 14% decline in output to 52 million units year on year.

Analysts have previously stated that the iPhone 14 Pro and Pro Max variants are selling well, despite little demand for the base model, which is generally Apple’s biggest seller.

According to Canalys, Apple was the only vendor in the top five to increase shipments in the third quarter, increasing its share of the global smartphone market to 18% from 15% a year earlier. According to Canalys, the gain in share occurred as the global smartphone market fell by 9%.

Last month, the firm announced that it would manufacture the next iPhone 14 in India, as the tech behemoth shifts some of its production away from China to hedge against risks posed by mounting tensions between Washington and Beijing.

According to TrendForce, India’s part of Apple’s output will top 5% in 2023 and continue to grow over time.

Leave a Reply

Your email address will not be published. Required fields are marked *