Apple has asked Foxconn to increase iPhone 14 Pro production by 10%, according to the latest survey by Apple analyst Ming-Chi Kuo. This analysis comes after another report said that the Pro models were selling better than the regular versions.
In a Twitter thread, analyst Ming-Chi Kuo writes:
This change is also evident in Apple Store availability, as iPhone 14 Pro models are widely unavailable and iPhone 14 stock is plentiful. The iPhone 14 Plus, on the other hand, will only start selling a couple of weeks from now.
Due to strong demand for the iPhone 14 Pro models, my latest survey indicates that Apple has asked Hon Hai [Foxconn] to switch the producton lines of the iPhone 14 to the iPhone 14 Pro models, which will help improve Apple’s product mix/iPhone ASP in 4Q22.
Based on the production line conversion rate, it’s equivalent to an increase in the shipment forecast of iPhone 14 Pro models in 4Q22 by about 10%. Only a few components suppliers’ order changes currently reflect Hon Hai’s production line conversion (e.g., Samsung Display).
Last week, analyst Ming-Chi Kuo said the iPhone 14 Pro Max dominated the first weekend of pre-orders, while the iPhone 14 Plus was a disappointment.
In a social media post, the Apple analyst – based on the delivery time of the company’s online stores in major markets – said that the regular models of the iPhone 14 had a “bad” result compared to the iPhone 13 series. On the other hand, Apple was seeing iPhone 14 Pro Max pre-order results as “good” and “neutral” about the Pro version.
It’s unclear whether Apple will increase the Pro models shipment forecast, but the likelihood of iPhone 14 and 14 Plus (accounting for about 45% of the overall iPhone 14 shipments) cutting orders is growing.
Suggest investors watch Pro models’ major beneficiaries recently, who may beat seasonality in 1Q23 thanks to more shipment allocation of Pro models and higher component prices. Revenue from the iPhone business will likely start to decline significantly in September or October for suppliers who are not the major beneficiaries of Pro models.
(1/5)Due to strong demand for the iPhone 14 Pro models, my latest survey indicates that Apple has asked Hon Hai to switch the production lines of the iPhone 14 to the iPhone 14 Pro models, which will help improve Apple’s product mix/iPhone ASP in 4Q22.
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 19, 2022
