Apple cutting production of iPhone 14 Plus and growing the output of the more luxurious iPhone 14 Pro due to lukewarm demand for the mid-range model, market research firm TrendForce said Tuesday.
The share of more luxurious iPhone 14 Pro series has amplified to 60% of the total output from the primarily planned 50%, and it could rise to 65% in the future, the report said.
Apple did not instantly respond to a Reuters’ request for comment.
Apple’s focus on high-end models may help it stand the softness in smartphone sales. In the thick of the chip crisis, Apple’s Pro and Pro Max premium row of devices, which have been strong sellers, helped the company drive margins higher.
The TrendForce report said that rising U.S. interest rates could press consumer spending, decline the demand for iPhones in the first quarter of 2023. This could lead to a 14% year-on-year drop in production to 52 million units.
Analysts have in the past said iPhone 14’s Pro and Pro Max versions were selling at a sharp step, although demand for the base model, usually Apple’s best seller, has been underwhelming.
Apple was the only vendor in the top five to register a growth in shipments in the third quarter, improving its share of the global smartphone market to 18% from 15% a year ago, according to research firm Canalys. The rise in share came as the overall smartphone market shrank 9%, Canalys said.
Last month, the company said it would manufacture its newest iPhone 14 in India, as the tech giant moves some of its production away from China to hedge risks rising from the growing tensions amongst Washington and Beijing.
TrendForce guesses the share of Apple’s output from India to exceed 5% in 2023 and increase over the years.