The demand for the standard model is weak

Sep 27, 2022 14:59 GMT  ·  By

Apple’s new-generation iPhones are now available for customers across the world, but for the time being, it looks like the Pro models are the big stars of the show.

At the same time, the standard iPhone 14 and the all-new iPhone 14 Plus are both failing to impress, with numbers from China proving that Apple’s strategy of creating a feature gap between Pro and non-Pro models is pushing most customers to the more expensive devices.

A report from SCMP confirms that the demand for the iPhone 14 in China has so far been very weak, as most customers go for the Pro.

Analysts agree that Apple’s strategy was to make a bigger difference between the new iPhones, but on the other hand, most people seem to be going for a Pro.

“Based on our current research, the standard iPhone 14 model has had a less favourable sales performance than that for Pro models, with the Pro Max being the most well-received [of the series] among Chinese consumers,” said Will Wong, IDC analyst, told the cited source. “Apple may need to fine-tune its differentiation strategy between the standard and Pro models … [to] potentially better stimulate demand for more budget-conscious iPhone users.”

A few days ago, analyst Ming-Chi Kuo said Apple reached out to Foxconn specifically to adjust the production strategy, asking the company to build more Pros and reduce the output of the standard iPhone 14.

In theory, this should lead to a bigger ASP for the iPhone 14, but on the other hand, the future of the standard models doesn’t necessarily look good right now.

“Due to strong demand for the iPhone 14 Pro models, my latest survey indicates that Apple has asked Hon Hai to switch the production lines of the iPhone 14 to the iPhone 14 Pro models, which will help improve Apple's product mix/iPhone ASP in 4Q22,” Kuo said.