Apple iPhone 14 Pro and iPhone Pro 14 Max in line for double-digit production reductions
It is no secret that the iPhone 14 Plus has been poorly received, with Apple already scaling-back production targets shortly after the smartphone’s release. However, Trendforce reports that the iPhone 14 Pro series will also suffer the same fate, albeit not until early next year. Purportedly, while sales have remained strong, rising inflation across Europe and the war in Ukraine have prevented Apple from matching its market expectations for its latest flagships.
Added to the mix is the fact that the iPhone 14 Pro and iPhone 14 Pro Max cost more than their predecessors in markets like the Eurozone and the UK. Although Apple has maintained pricing between the iPhone 13 and iPhone 14 series in the US, the continued strength of the US dollar compared to other major currencies has resulted in price rises outside Apple’s home market. Now, analysts expect Apple to cut iPhone 14 Pro series production volumes to 52 million units, a 4 million-unit reduction from earlier estimates.
In other words, production estimates have dropped by 14%. Conversely, Apple is thought to have increased the ratio of iPhone 14 Pro series production, likely to account for lacklustre iPhone 14 Plus sales. Reputedly, Apple has moved from its initial ratio of 50% to 60%, but this could increase again to 65% if needed. Still, Apple hopes to still ship 240 million iPhone units by the end of 2022, a 2.8% annual increase from last year. According to Trendforce, Apple will commit to iPhone 14 Pro series reductions from Q1 2023 onwards.