Apple Reduces Production of the iPhone 14 Plus, But Instead Adds More iPhone 14 Max

JAKARTA - Apple Inc is reportedly forced to reduce production of the iPhone 14 Plus and increase production of the more expensive iPhone 14 Pro due to lukewarm demand for the mid-range model. This was first reported by market research firm TrendForce on Tuesday, October 25.

The share of the more expensive iPhone 14 Pro series has increased to 60% of the total output, from the originally planned 50%. Even according to the report it could increase to 65% in the future.

Apple did not immediately respond to a request for comment from Reuters.

Apple's focus on high-end models could help it counter the slump in mid-range smartphone sales. In the midst of the chip crisis, Apple's premium tier Pro and Pro Max devices have become very powerful, which has finally helped Apple get higher profit margins.

The TrendForce report also said that rising US interest rates could dampen consumer spending, hurting iPhone demand in the first quarter of 2023. It could also lead to a 14% year-on-year decline in production to just 52 million units.

Analysts have in the past said the Pro and Pro Max versions of the iPhone 14 are selling out quickly, although demand for the base model, which is usually Apple's best-selling so far, has been disappointing.

According to research firm Canalys, Apple is the only vendor in the top five smartphone manufacturers to record positive growth in shipments in the third quarter, amid increasing its share of the global smartphone market to 18% from 15% last year. "This increase in share comes as the smartphone market as a whole shrank 9%," said a source at Canalys.

Last month, Apple said it would manufacture the new iPhone 14 in India, as the tech giant moved some of its production from China to hedge risks arising from escalating tensions between Washington and Beijing.

TrendForce also expects Apple's share of output from India to exceed 5% by 2023 and increase over the years.