Whether in sales, due to the rise in subscription prices or the drop in production, the big technology companies are resisting inflation.
Now Apple is cutting production of the iPhone 14 Plus and ramping up production of the iPhone 14 Pro due to weak demand for the mid-range model, market research firm TrendForce said on Tuesday.
The share of the iPhone 14 Pro series has risen to 60% of total production from the initially planned 50%, and could rise to 65% in the future, according to the report.
Apple’s focus on higher-end models may help it offset weakness in smartphone sales. Amid the chip crisis, the premium-tier Pro and Pro Max devices have been strong sellers, helping the company increase sales margins.
The TrendForce report said that rising US interest rates could hit consumer spending, impacting demand for iPhones in the first quarter of 2023. This could lead to a 14% year-on-year drop in production, according to the analysis firm.
Analysts have said in the past that the Pro and Pro Max versions of the iPhone 14 were selling at a brisk pace, though demand for the base model, usually Apple’s best-selling model, has been disappointing.
Apple was the only vendor in the top five to post shipment growth 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.
TrendForce estimates that the share of Apple’s production in India will exceed 5% in 2023 and will increase over the years.