Since the official release of the iPhone 14 series, the smartphones have been attracting a lot of attention. The hardware and software performance are not the only aspects attracting attention. The market performance of this series is also a subject of interest. Apple analyst and investment bank Wedbush analyst, Dan Ives said in an interview that the market demand for Apple’s iPhone 14 series smartphones is “stronger than iPhone 13“.
Growing fears of a recession among investors have put Apple shares under as much downward pressure as other stocks. But the arrival of new iPhones and the Apple Watch could turn that around. According to Ives, the two new products appear to have shown strong market demand from the start. Consumer demand for Apple’s high-end models has been particularly strong. Ives estimates that 85% to 90% of new iPhone preorders are for the iPhone 14 Pro and iPhone 14 Pro Max.
“In terms of the average selling price of products, this demand is very strong, and I think it will be 8% to 10% higher than the iPhone 13,” Ives said in an interview. “While demand growth is shrinking, But at least so far, I think supply is more important than demand.”
Fairly strong early demand for Apple’s new products
On September 7, Apple released the iPhone 14 series of smartphones at the company’s headquarters. The product pre-sale began on September 9, and consumers could pick up the goods at the store on the 16th. The new AirPods Pro and Apple Watch Ultra Apple Watch began shipping on September 23.
Other analysts seem to agree with Ives, and they all seem fairly strong early demand for Apple’s new products.
JPMorgan analyst Samik Chatterjee wrote in a report: “The market demand has been strong following the release of the new iPhones. The organic market continues to favour the Pro model as it did last year, but compared to last year’s, the lead times for both new Pro models have been extended.” “The lead times for the iPhone 14 series of smartphones began to extend a day after the product launch, compared to the average delivery time for the iPhone 13 series. The period only started to extend a week after the product was released. In terms of delivery time, the market demand for the rest of the new products such as the Apple Watch Ultra is also quite strong.”
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Chatterjee adds that the new $800 Apple Watch Ultra is also off to a good start. Despite the initial data being favourable for Apple, the company’s shares were hit hard during the September sell-off. Apple shares have fallen about 8% in the past month and have fallen 15% this year. Ives believes that this pullback may be too much.
iPhone 14 Pro series demand is tied to its upgrade
The iPhone 14 Pro series is obviously more attractive than the regular iPhone 14 and iPhone 14 Plus. The market performance also reveals that the Pro series is performing better, much better. According to reports from analysts and research institutions, the two Pro versions with significant upgrades are in strong demand, stronger than the iPhone 14 and iPhone 14 Plus. The delivery times of the Pro series are also better than the other models.
The latest report from the investment bank shows that in the third week after starting to accept reservations, the demand for the iPhone 14 Pro and iPhone 14 Pro Max is still strong. Just like the report from Dan Ives, the market performance is better than during the same period of the iPhone 13 Pro series.
Some investment banks said in the report that globally, the delivery time for iPhone 14 online reservations is still 3 days, which has not changed. The average estimated delivery time of the iPhone 14 Pro has been reduced from 35 days to 31 days. However, for the iPhone 14 Pro Max, the delivery time is now 39 days, a decrease from the previous 41 days.
According to reports from investment banks, in major markets such as the United States and China, the estimated delivery time after pre-ordering the iPhone 14 Pro is still more than 30 days, and the iPhone 14 Pro Max is more than 35 days. Although the investment bank’s tracking survey shows that the demand for the iPhone 14 Pro and iPhone 14 Pro Max is better than that of the iPhone 13 Pro series in the third week of booking, the demand for the iPhone 14 and iPhone 14 Plus is not as good as the iPhone 13 and iPhone 13 mini.
iPhone 14 / Pro series sold almost a million units in the first three days
According to Bloomberg, investment bank Jefferies released the latest research report on the iPhone 14 series. According to the report, Chinese consumers are buying fewer iPhone 14s at the start of the launch than they did last year when the new models went on sale. The world’s largest smartphone market is experiencing “a year of decline,” according to the report.
Analysts such as Edison Lee point out in the latest report that Apple’s latest series of smartphones sold 987,000 units in the first three days of launch. This figure is about 11% lower than the sales of similar products in the iPhone 13 series in the same period last year.
It was a rare double-digit decline for the iPhone, which has been the most resilient of sales in China’s smartphone market, while its domestic leader has been sluggish throughout the year.
In addition, Jefferies analysts also mentioned, “These preliminary data suggest that iPhone 14 sales may not be as strong as pre-order levels suggest, after all, it doesn’t cost to click to pre-order”. If the pre-order is this poor in China, then the sales will be even lower.