Apple has asked Foxconn to increase iPhone 14 Pro production by 10%, according to the latest survey by Apple analyst Ming-Chi Actu. This analysis comes after another report said the Pro models were selling better than the regular versions.
In a Twitter thread, the analyst Ming-Chi News written:
Due to the high demand for iPhone 14 Pro models, my latest survey indicates that Apple has asked Hon Hai [Foxconn] to switch product lines from iPhone 14 to iPhone 14 Pro models, which will help improve the Apple/iPhone ASP product line in 4Q22.
Based on production line conversion rate, this equates to an estimated 10% increase in shipment forecast for iPhone 14 Pro models in 4Q22. Only a few component supplier order changes currently reflect Hon Hai’s production line conversion (eg, Samsung Display).
This shift is also evident in Apple Store availability, as iPhone 14 Pro models are largely unavailable and iPhone 14 stock is plentiful. The iPhone 14 Plus, on the other hand, won’t start selling for a few weeks.
Last week, analyst Ming-Chi Actu 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 delivery time to the company’s online stores in major markets – said regular iPhone 14 models have a “bad” result compared to iPhone 13 series. On the other hand, Apple rated the pre-order results of iPhone 14 Pro Max as “good” and “neutral” about the Pro version.
It’s unclear whether Apple will increase the shipping forecast for the Pro models, but the likelihood of the iPhone 14 and 14 Plus (accounting for around 45% of overall iPhone 14 shipments) cutting orders is increasing.
Suggest investors watch the top Pro model beneficiaries recently, which could beat seasonality in 1Q23 thanks to a wider spread of Pro model shipments and higher component prices. Revenues from the iPhone business will likely start to drop significantly in September or October for vendors that aren’t the primary beneficiaries of the Pro models.
Netcost-security.fr also reported that Samsung Display plans to increase production of OLED displays, while LG wants to be part of the process for Pro models.
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