Sales of Apple’s new iPhone 14 a mixed bag in China, with Pro models in hot demand but lukewarm response for standard models
- Apple supplier Foxconn Technology Group is said to have dismantled parts of its production lines for standard iPhone 14s, and switched them to Pro
- Analysts say Apple may need to fine-tune its differentiation strategy in China between the standard and Pro models
A week after Apple launched its new iPhone 14 handsets in China, the verdict from consumers appears to be a mixed one, with Pro models in high demand but basic models facing lukewarm sales amid mounting economic headwinds in the country.
“Based on our current research, the standard iPhone 14 model has had a less favourable sales performance than that for Pro models, with the Pro Max being the most well-received [of the series] among Chinese consumers,” said Will Wong, a Singapore-based analyst at IDC.
The sales performance indicates “Apple may need to fine-tune its differentiation strategy between the standard and Pro models … [to] potentially better stimulate demand for more budget-conscious iPhone users,” added Wong.
Apple supplier Foxconn Technology Group is said to have dismantled parts of its production lines for standard iPhone 14 models in China and updated them to Pro lines, according to a report by Chinese state-owned media outlet China Securities Journal. A spokesman at Foxconn, formally known as Hon Hai Precision Industry, said the company “would not comment on market rumours”.
TF Securities analyst Kuo Ming-chi, who said earlier this month that orders of the iPhone 14 and 14 Plus were likely to be cut, wrote in his latest report that if such a production line switch is made, iPhone 14 Pro models would take up 60 to 65 per cent of total shipments for the iPhone 14 series in the second half of 2022, up from a previous estimate of 55 to 60 per cent.
The iPhone 14 Pro Max, the most expensive model, is expected to be the most popular, accounting for 30 to 35 per cent of the new product line, according to Kuo, who is known for his accurate assessment of Apple’s business in China.