Apple has ordered production of over 90 million iPhone 14's from suppliers according to Wedbush and supply chain analyst Daniel Ives, with most of the production focused on iPhone 14 Pro and Max. As we speed towards Apple's September 7 event, normally, this news would cause jubilation but with much of the world facing a possible recession and economic hardship, is Apple overplaying its hand?
In an analyst report covered by 9to5Mac, Daniel Ives also added his support for the rumor that the new iPhone 14 Pro models are looking at a $100 upward price bump. Market conditions and that price increase would suggest that iPhone 14 sales could see a dip from the iPhone 13, but if these production reports are correct then Apple isn't planning on slowing down. Maybe Apple is depending on the iPhone Upgrade Program to pick up the slack with more people just viewing it as another monthly payment and not worrying about the final dollar amount.
Price sticker shock
Daniel Ives states, " While the base iPhone will stay at the same price, we believe a $100 price increase on the iPhone 14 Pro/Pro Max is likely in store given component price increases and added functionality on this new release."
Also, with Apple choosing to produce more iPhone 14 Pro and Pro Max units for its initial release period, the Cupertino-based company is basically pushing consumers to spend the extra $100 or wait for the more affordable base model. Sure the new iPhone 14 and 14 Max will have some new components, but with consumers dealing with massive inflation and economic downturn, is now the time for Apple to lose consumer confidence by raising already high prices?
My first car ($450) cost me less than my last iPhone 11 ($1,100!!!) purchase a few years back and lasted longer than my iPhone 11. In the meantime, maybe I'll get lucky and find a great deal on our best phone deals page.
Analyst faith in Tim Cook
Although paying an additional $100 for the upcoming iPhone 14 Pro may seem daunting for most, Ives believes people will buy it, as he explains:
"Despite the zero Covid shutdowns in China that disrupted the Asia supply chain across the board in March-May and caused some white knuckles on the Street, Cook yet again navigated Cupertino through the storm and now is set for another flagship iPhone 14 upgrade cycle to take place over the next 6 to 9 months. While the softer macro will clearly play a role in the demand story, we believe the baseline for 220 million iPhone units in FY23 is likely a low bar given the pent up demand story that we are seeing globally for Apple."
In layman's terms, regardless of the economic hardships and fears consumers may be having this year, they're going to line up with their hard-earned cash to buy the latest iteration of the iPhone. The pent up demand piece of that suggests that like our own Kimberly Gedeon many weren't satisfied with the iPhone 13 upgrades, however, Kimberly isn't sure about the iPhone 14 upgrades either.
Although Daniel Ives may be sold on the outlook for iPhone 14, simply believing that Apple devotees facing uncertain economic times, will throw their limited financial resources away, as the holidays are nearly upon us, could be short-sighted and end up being disastrous for Apple.
By the way, if anyone is in the market for a dozen pints of blood or a vital organ or two, email me. I need to buy a new iPhone 14.