Apple's sales strategy fails - iPhone 14 Plus pre-orders are worse than iPhone 13 mini

Monday, 12 September 2022 at 18:10

Tianfeng International analyst, Ming-Chi Kuo released a report saying that compared with the iPhone 13 series, the pre-order results of the iPhone 14 Pro Max, Pro and the two standard models were good. The report reveals that the iPhone 14 Pro Max pre-orders are better than the iPhone 13 Pro Max. Comparing the iPhone 14 Plus with the iPhone 13 mini, the latter's orders are better. This is actually surprising considering the poor sales of the mini model which necessitated its cancellation. However, the overall current pre-order results are neutral for Apple. It is unclear whether Apple will increase its shipment forecast for the Pro model.

Ming-Chi Kuo mentioned in the report:

Delivery times of more than 4 weeks may reflect good demand, while the iPhone 14 Pro Max and 14 Pro both have delivery times of more than 4 weeks (pro-Max/Pro is about 6/5 weeks).
The iPhone 14 and 14 Plus will be in stock on launch day, reflecting sluggish demand. As it stands, pre-order results for the iPhone 14 and 14 Plus are worse than the iPhone SE 3 and iPhone 13 mini.
The iPhone 14 Plus is the replacement for the iPhone 13 mini. However, this new product's pre-order result was significantly lower than expected. This means that Apple's product segmentation strategy for standard models this year has failed.
Slightly longer/similar lead times for iPhone 14 Pro Max / 14 Pro (compared to iPhone 13 Pro Max / 13 Pro), and even shorter lead times for iPhone 14/14 Plus models (compared to iPhone 13/13 mini).

Ming-Chi Kuo claims that the pre-order result of the Pro model does not mean that Apple will immediately increase the order for the Pro model. Whether Apple will increase Pro orders depends on how long the strong demand for Pro models lasts during a recession. If demand for the iPhone 14 and 14 Plus does not improve after launch, Apple could cut it's November and subsequent shipment forecasts for the iPhone 14 and 14 Plus within a few weeks. According to reports, based on current pre-order results, strong demand for the iPhone 14 Pro models will likely continue until at least November.