Posted on September 27, 2022 at 10:33
Successful bet for Apple. His decision not to raise the prices of his iPhones to account for inflation turns out to be a winning option. Three weeks after launch, all four iPhone 14s are off to a very good start, starting with the two most premium models in the range, the Pro and Pro Max, which are seeing particularly strong demand. And that despite its price: between 1,329 and 1,979 euros the first, the second oscillating between 1,479… and 2,129 euros.
It’s not enough to scare the most tech-savvy consumers. “Pro’s share of sales is higher than ever,” a French telecoms operator said, without giving figures. “Like every fall, new iPhones generate a lot of excitement, but this year the momentum is particularly strong on the Pro and Pro Max. »
“Apart from some parts, we are at the same volumes as last year, but Pro and Pro Max stand out and are in the majority of the orders,” observes another trader. Faced with demand, Apple has even asked Foxconn to increase its production capacity, launching lines dedicated to the “basic” iPhone 14, according to analyst Ming-chi Kuo.
A new round of sales
For Apple, this is excellent news, because the brand was playing big with the iPhone 14. Between April and June, iPhone sales, which still account for half of its turnover, only increased by 3%, compared to more 5% in the second quarter. and even 9% even earlier. After the classic impulse effect linked to the launch of the iPhone 13 last fall (+47%), demand had weakened due to the difficult macroeconomic context, while supply was interrupted by the strict Zero Covid policy in China, where they are assembled. almost every iPhone. . So much so that Apple has chosen to produce part of the iPhone 14 in India ahead of schedule.
In this context, the group led by Tim Cook had the iPhone 14 to restart a new cycle. All technology was waiting to see how the brand would react to inflation. Finally, “Apple has maintained its prices for China and the United States, which alone represent 50% of deliveries,” recalls Chiew Le Xuan, an analyst at Canalys. In Europe, on the other hand, the euro’s decline against the dollar means European consumers will pay more for iPhones.
Three weeks later, Apple is reaping the benefits of this strategy. Customers who have not changed their device for several years are more logically opting for the iPhone 14 Pro and Pro Max than for the “classic” iPhone 14s. And for good reason: the new features (such as the internal A16 chip or the Dynamic Island display mode) are only present in the two most premium models. Other customers tend to stick with their iPhone 13s, which are still technically very efficient.
Products mixture
For Apple, this craze for the iPhone 14 Pro and Pro Max is a blessing. With this wisely dosed “mix of products”, the apple brand manages to increase the average sale price, without actually increasing the price on the labels. The average sale price, a key figure for Wall Street, should thus reach 892 dollars this quarter. It is then expected to break the $900 mark for the first time next quarter, according to Counterpoint Research. However, until recently, the previous record, reached at the end of 2021, was “only” $873.
However, Apple will also have to support sales of its “basic” iPhone 14s to increase volume. In recent days, however, sales have been rebalancing, with wait times for the iPhone Pro and Max forcing customers to switch to the two more affordable models.