• Thu. Jun 13th, 2024

Jodd News

Breaking news

Apple Considering Price Hike for iPhone 15 Pro Models

Apple Considering Price Hike for iPhone 15 Pro ModelsApple Considering Price Hike for iPhone 15 Pro Models

Apple Considering Price Hike for iPhone 15 Pro Models

Publish – 25 july, 2023

Apple Inc. Plans to Produce 85 Million Units of iPhone 15 Despite Global Challenges.

According to sources familiar with the matter, Apple Inc. is reportedly urging its suppliers to manufacture approximately 85 million units of the iPhone 15 this year, which is in line with the production figures from the previous year. Despite the current turmoil in the global economy and an anticipated decline in the overall smartphone market, the Cupertino-based company aims to maintain steady shipments. To boost revenue, Apple is contemplating raising the prices for its Pro models, insiders said, requesting anonymity as the targets are not public.

Apple Considering Price Hike for iPhone 15 Pro Models
Apple Considering Price Hike for iPhone 15 Pro Models

Being the world’s most valuable company, Apple’s influence extends across the global economy, benefiting thousands of suppliers and creating job opportunities for millions in countries ranging from the US and China to Vietnam and India. In the current year, Apple’s shares have surged nearly 50 percent, propelling its market capitalization to an impressive $3 trillion.

Apple, along with its competitors, is facing challenges due to a sharp decline in demand for electronics, including smartphones and computers. Economic uncertainty and surging prices have led both businesses and consumers to postpone purchases. In response, the US Federal Reserve is expected to raise interest rates to combat inflation, while China’s economy, the second-largest in the world, experienced a slowdown in the second quarter.

Given Apple’s significant impact, its production schedule garners close attention. Companies like Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co., and Foxconn Technology Group heavily rely on iPhone business to drive growth and improve margins. In 2018, Apple chose to stop disclosing specific shipment numbers, shifting investor focus towards more predictable aspects like its App Store.

Despite some production challenges, Apple’s forecast for the iPhone 15 remains robust. The company faced a minor setback with CMOS image sensor production, causing a trim of about two million units in the forecast for entry-level phones. However, they compensated for this by increasing orders for higher-priced Pro models.

Apple Considering Price Hike for iPhone 15 Pro Models

Apple Considering Price Hike for iPhone 15 Pro Models
Apple Considering Price Hike for iPhone 15 Pro Models

Moreover, there were minor issues with the new iPhone screens, but sources say the problem should be resolved within a week or two and will not significantly impact overall production. Apple’s representative declined to comment on these matters.

Compared to previous years, Apple’s forecast of 85 million units for this year is slightly lower than its initial target of 90 million units. The company faced challenges achieving these targets in previous years due to a chip shortage in 2021 and prolonged Covid-related restrictions in China in 2022, which disrupted production.

While Apple maintains steady growth, several competing smartphone companies that rely on the Android operating system have encountered struggles. Counterpoint Research indicates that phone sales have declined for eight consecutive quarters, with the June quarter showing an eight percent drop. Chinese Android brands, Vivo and Xiaomi, have both experienced declines of more than 10 percent.

Counterpoint estimates that Apple’s sales slid two percent in the most recent quarter. However, its market share rose to 17 percent, thanks to the continued demand for phones priced at $600 or higher. The company is also capitalizing on the “premiumization” trend, gaining record shares in new markets that were traditionally not considered its core markets. For instance, Apple’s sales in India grew by 50 percent YoY in Q2 2023, as per the report by Counterpoint analysts.

According to reports, Apple is gearing up to unveil its much-anticipated ‌iPhone 15‌ series in September, but there are concerns that the supplies for the Pro models might face limitations. The upcoming lineup is said to include four devices, all of which are rumored to sport a USB-C port, the innovative Dynamic Island, and a slightly more curved frame. Additionally, the Pro models are expected to undergo several other enhancements and alterations.

In preparation for the launch, Apple has reportedly requested its suppliers to manufacture approximately 85 million units of the iPhone 15 this year. This figure is said to be consistent with the production volume from the previous year, as per the report by Bloomberg.

By admin

2 thoughts on “Apple Considering Price Hike for iPhone 15 Pro Models”

Leave a Reply

Your email address will not be published. Required fields are marked *