Lead times for Apple’s recently announced iPhone 14 family of smartphones give analysts enough insight into demand for each of the four models, and if actual numbers exceed forecasts for pricier new products, even the base models in the new family may not match the level of awareness of their predecessors. At the same time, according to experts, the emphasis on demand for older models will allow Apple to increase the average selling price of its smartphones.
According to representatives MorganStanleyIn the fiscal year ending in late September, Apple increased the average retail price by 5% to $900 per device due to the launch of the iPhone 14 Pro and iPhone 14 Pro Max. Pre-order times for the iPhone 14 Pro Max have been the longest for a comparable lifecycle stage of any iPhone launched in the past six years. Wait times for the iPhone 14 Pro ranked third in six years, but roughly in line with the iPhone 13 Pro and iPhone 13 Pro Max launched a year ago.
According to experts from Morgan Stanley, even in India and China, the number of pre-orders for the two older iPhone models of the new generation was higher than expected. This suggests that inflation and macroeconomic uncertainty have only minimally impacted Apple customer behavior. According to the authors of the research note, demand for the iPhone has low elasticity, almost like the most-demanded groceries. According to Morgan Stanley forecasts, in the current quarter Apple will have time to ship 51 million smartphones and launch 49 million units, and in the next quarter it will ship 84.5 million units and launch 82 million products of this type. In the case of an increase in production volumes, sales volumes can also increase if this is facilitated by the demand situation. Those projections beat expectations from Wedbush Securities officials, who are counting on Apple’s ability to ship about 90 million smartphones by the end of the year.
Renowned industry expert Ming-Chi Kuo approved high demand for the iPhone 14 Pro and iPhone 14 Pro Max, but notes that the initial iPhone 14 and the slightly larger iPhone 14 Plus are not in high demand and these models will most likely be in stores on the first day of sales. According to the analyst, Apple’s approach to positioning and segmenting iPhone models this year has proven unsuccessful. Earlier, the iPhone 13 mini and iPhone SE of the third generation were more in demand, but the iPhone 14 and iPhone 14 Plus as entry-level models do not justify the hopes placed on them. According to the expert, modest sales volumes could end up undermining Apple’s revenue growth in the next quarter.