Apple Inc is cutting back production of the iPhone 14 Plus while expanding production of the more costly iPhone 14 Pro owing to poor demand for the mid-range model, according to research firm TrendForce on Tuesday.
In contrast to the initial plan, which called for a 50% share of the more expensive iPhone 14 Pro series, the actual production share is now 60%, with potential future growth to 65%, according to the report.
Apple may be able to combat the decline in smartphone sales by concentrating on high-end models. Apple’s Pro and Pro Max premium tier smartphones, which have been popular sellers, assisted the business in boosting margins through the worst of the chip crisis.
In the first quarter of 2023, the market for iPhones may be negatively impacted by rising U.S. interest rates, according to the TrendForce report. This might result in a 52 million unit production drop of 14% year-on-year.
Analysts have in the past said iPhone 14’s Pro and Pro Max versions were selling at a brisk pace, although demand for the base model, typically Apple’s best seller, has been underwhelming.
According to research firm Canalys, Apple was the only company in the top five to see an increase in shipment volume in the third quarter, increasing 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 part of its production away from China to mitigate the risks associated with the escalating tensions between Washington and Beijing, the firm announced last month that it will build the newest iPhone 14, the iPhone 14, in India.
TrendForce predicts that India’s percentage of Apple’s output will exceed 5% in 2023 and rise over time.