Apple is reducing production of the iPhone 14 Plus and ramping up production of the more expensive iPhone 14 Pro due to lukewarm demand for the mid-range model, market research firm TrendForce said on Tuesday.
The report said that the share of the more expensive iPhone 14 Pro series has increased to 60 percent of the total production from the initially planned 50 percent and may increase to 65 percent in the future.
Apple’s focus on high-end models could help it combat softening smartphone sales. During the chip crisis, Apple’s premium tier of Pro and Pro Max devices, which have been strong sellers, helped the company raise margins.
The TrendForce report said that rising US interest rates could reduce consumer spending, which could reduce demand for iPhones in the first quarter of 2023. This could lead to a 14% year-on-year decline in production to 52 million units.
Analysts have said in the past that the Pro and Pro Max versions of the iPhone 14 are selling at a brisk pace, although demand for the base model, typically Apple’s best-seller, has been weak.
Apple was the only vendor in the top five to register an increase in shipments in the third quarter, increasing its share of the global smartphone market to 18 percent from 15 percent a year ago, according to research firm Canalys. The share surge came as the overall smartphone market shrank 9 percent, Kanellis said.
Last month, the company said it would manufacture its latest iPhone 14 in India, as the tech giant moves some of its production away from China to avoid risks posed by rising tensions between Washington and Beijing. could
TrendForce estimates that Apple’s production share from India will exceed 5% in 2023 and will increase over the years.
