Due to the poor demand for the mid-range model, Apple is cutting production of the iPhone 14 Plus and increasing production of the more expensive iPhone 14 Pro, according to market research firm TrendForce on Tuesday.
According to the source, the ratio of the more expensive iPhone 14 Pro series in the overall output has climbed from the initially anticipated 50% to 60% and may even go up to 65% in the future.
A Reuters inquiry for comment received no immediate response from Apple.
Apple may be able to combat the decline in smartphone sales by concentrating on high-end devices. Apple’s Pro and Pro Max premium tier devices, which have been popular sellers, assisted the business in boosting margins during the worst of the chip crisis.
In the first quarter of 2023, the market for iPhones could be negatively impacted by rising US interest rates, according to TrendForce research. This could result in a 14% annual production decline to 52 million units.
Analysts had reported that the Pro and Pro Max models of the iPhone 14 were moving quickly, but that demand for the standard model—typically Apple’s best-seller—was disappointing.
According to research firm Canalys, Apple was the only firm in the top five to record a rise in shipment quantity in the third quarter, boosting its market share of smartphones globally from 15% to 18%. According to Canalys, the share growth occurred despite a 9% decline in the global smartphone market.
As the Apple giant shifts some of its production away from China to mitigate the risks associated with the escalating tensions between Washington and Beijing, the company announced last month that it would build the newest iPhone 14, the iPhone 14, in India.
According to TrendForce, India will contribute more than 5% of Apple’s output in 2023 and will continue to grow over time.
