Joykong
2022-09-11

How's China Taking To iPhone 14 Lineup? Analyst Shares Insights, Strategy To Boost Profits In Mature Market

Apple, Inc. launched its newest iPhone lineup on Wednesday and the reactions have been mixed.

Prominent Apple analyst Ming-Chi Kuo offered his take on the early pointers towards the uptake of the iPhone 14 models in China, one of Cupertino’s key markets.

Premium Has Strong Momentum: Orders for the two iPhone 14 Pro models in China were around 85% and the lowest interest is for the iPhone 14 Plus at 5%, Ku said in a series of tweets.

Historically pre-orders lean more toward Apple’s high-end products in the early stage, but this time around, orders for the Pro models have been higher-than-normal, the TFI Securities analyst said.

This reflects Apple’s strategy change of having major updates only for the Pro models, according to Kuo.

Despite Apple leaving iPhone prices unchanged, the average selling price of the iPhone 14 series is still about 10% higher in the second half of 2022 compared to the year-ago period. Kuo attributed this to the higher iPhone 14 shipment allocation and the iPhone 14 Plus replacing the iPhone 13 mini.

What Next: Going forward, Kuo expects Apple to start creating differentiation between the iPhone 15 Pro and the iPhone Pro Max model.

“It’s the best practice via a precise product segmentation strategy to generate more sales/profits in a mature market,” he said.

Kuo added that Apple can afford to do product segmentation because the "Android camp" still poses no threat to the company in the high-end market due to brand value and ecosystem advantages.

Price Action: Apple closed Thursday’s session down 0.96% at $154.46.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • AntLiew
    2022-09-11
    AntLiew
    invest in $Clean Energy Fuels(CLNE)$ and help take methane out of the atmosphere and save our planet
  • Brrrrrrrrrrr
    2022-09-11
    Brrrrrrrrrrr
    Chinq will still support overseas brand, and any negative news will not sustain too long to drop demand.
  • CYKuan
    2022-09-11
    CYKuan
    thanks for sharing
  • Kazren
    2022-09-11
    Kazren
    Ok
  • LiYen
    2022-09-11
    LiYen
    Ok
  • JDhope89
    2022-09-11
    JDhope89
    👌
Leave a comment
42