iPhone 14 series is a bigger hit than iPhone 13

iPhone 14 series is a bigger hit than iPhone 13

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The new iPhone 14 Pro and Pro Max come in four colors -- two of them new (space black and dark purple).
While Apple is producing fewer iPhone 14 units, it's making a lot more iPhone 14 Pro Max ones.
Photo: Apple

Reports that Apple is making fewer iPhone 14 units than its predecessor are true… but that’s not the whole story. Apple is producing many more units in the entire iPhone 14 series than it did the earlier models, according to an analyst.

And the change will be a benefit for Apple’s bottom line.

iPhone 14 Pro Max is big seller

Apple unveiled four models in the iPhone 14 series in early September. The 6.1-inch “standard” iPhone 14 model is a modest update from the 2021 version, but the two Pro models have a better camera and the Dynamic Island in place of the screen notch.

Recent reports indicate that there’s weak demand for the standard iPhone 14. That may have helped fuel a 4.8% drop in AAPL shares on Thursday. Some people may see reports that the iPhone 14 is experiencing slow sales and think that includes the entire series – it does not.

Weak demand for the basic model is only half of the story, and not the most important part. An analyst’s research indicates that Apple is making more iPhone 14 Pro Max units to keep up with demand than was necessary for the equivalent model of 2021.

Demand is apparently strong enough that Apple will produce about 5% more iPhone 14 series units through the end of November than it did iPhone 13 series units last year, according to Ross Young, CEO of Display Supply Chain Consultants.

He bases this information on sources at companies that provide Apple with iPhone display panels. “Based on panel orders through November, the 14 Pro Max is up 18% Y/Y vs. the 13 Pro Max while the iPhone 14 is down 38% vs. the iPhone 13,” said Young.

He also says Apple is making about as many iPhone 14 Plus units as it did iPhone 13 Pro units in 2021… far more than it did iPhone 13 mini. The Plus replaced the mini in Apple’s lineup.

Expect a higher iPhone ASP

According to Young, Apple is producing more iPhone 14 Pro Max units to keep up with demand than any of the other 2022 models.

The Pro Max has a starting price of $1099, while the standard model starts at $799. And the 14 Plus is $899 compared to the $729 cost of the 13 mini. Increasing sales of all models, and especially more expensive ones, will benefit Apple’s average selling price and its bottom line.