Removing a ‘mini’ variant of the iPhone did little to improve Apple’s sales this year, as it has reportedly sent notifications to several supply chain partners to reduce iPhone 14 Plus production. The technology giant still aims to reach its total shipments goal in 2022 for the new models, which is a maximum of 90 million units.
Apple Apparently Intends to Replace iPhone 14 Plus Units With ‘Pro’ Models Production, Since Demand Remains Consistent for Them
Unexpectedly sluggish sales have forced Apple’s supply chain partners and channel operators to reduce iPhone 14 Plus production by 40 percent. Earlier, we reported that Pegatron, one of Apple’s assembling partners, had to reduce orders by up to 90 percent and freeze a hiring spree just three days after announcing that it would start recruiting more employees. To make up for this loss, Apple is believed to be shifting away from iPhone 14 and iPhone 14 Plus production while focusing more on the ‘Pro’ models.
A report published on DigiTimes states that these losses have forced a revision of the iPhone 14 Plus’ total shipments figure, reducing it to 10 million units for 2022. Keep in mind that this sales number is still relatively positive compared to the likes of Google, but given that Apple has a target to maintain, that figure is not looking so enticing. Thankfully, the success of the iPhone 14 Pro and iPhone 14 Pro Max provides sufficient relief to Apple.
With the base model selling for $999 and going up to $1,599 in the U.S., more sales of the iPhone 14 Pro and iPhone 14 Pro Max means Apple has a higher chance of increasing its profit margins and average selling price (ASP), which should be a healthy indicator for shareholders. As for the iPhone 14 Plus, though it was praised by multiple media outlets for sporting several upgrades, it appears that other factors have affected people’s buying decisions.
Typically, larger-screen smartphones are coveted by customers, but on this occasion, rising inflation has eaten into the savings of residents in the millions around the world, preventing them from switching to a new iPhone. After seeing the number of upgrades the iPhone 14 Pro and iPhone 14 Pro Max flaunt, these customers are likely going in the direction of spending more for the more premium versions since they are also getting more upgrades in return. We will continue to monitor if the situation improves, and when it does, we will inform our readers.
News Source: DigiTimes
