No increase in quantity but an increase in price? The smartphone market is sluggish, Apple may raise the price of iPhone 15.
Media reports indicate that Apple's goal is to maintain stable shipments despite the expected decline in global smartphone sales. However, due to the possible price increase of Apple Pro models, total revenue may increase. Last week, it was reported that the production of displays faced obstacles, which may lead to a shortage in the supply of Apple 15 Pro and Pro Max, thereby impacting Apple's short-term performance.
This year, the global smartphone market is not doing well, and Apple's strategy may be to raise prices for its new devices.
On Monday, July 24th, Eastern Time, media reports cited insiders as saying that Apple has requested suppliers to produce approximately 85 million units of the Apple 15 this year. The goal is to maintain stable shipments of Apple devices in the global smartphone market, which is expected to experience a decline in sales due to macroeconomic factors. However, Apple's total revenue may increase because Apple is considering raising the prices of its high-end Apple Pro models.
The above-mentioned media reports did not disclose the extent of Apple's price increase. Apple has not commented on the reports.
Apple typically releases new products in September each year. Since 2019, the starting price of the Apple Pro in the United States has been $999, while the larger-screen Max model starts at $1099.
Some comments point out that since the outbreak of the COVID-19 pandemic, Apple has never raised the prices of its new devices in the United States. However, due to exchange rate fluctuations, prices have changed in some regions. For example, the Apple 14, which was launched in the UK, Japan, Germany, and Australia last year, had a higher starting price than the Apple 13 in those regions.
Recently, there have been reports that Apple's high-end devices may face supply shortages, which could impact this year's sales performance.
Last week, Wallstreetcn mentioned that media reports stated that Apple is facing challenges in assembling the Apple 15 Pro and Pro Max due to the need to reduce the width of the bezels and the use of new manufacturing processes. This may result in a shortage of supply when these two new models are released in September.
The media reports also mentioned that the supply shortage of the Apple 15 Pro Max may be more severe than that of the Apple 15 Pro.
What's more important is that this technical issue affects Apple's high-end products. The retail prices of the Pro and Pro Max series of Apple devices are usually at least $200 higher than the base models, which means they have higher profit margins. The supply shortage of these phones at the time of release may have a negative impact on Apple's short-term performance.
Recent data shows that the global smartphone market has been declining until the first half of this year. Technology market analysis firm Canalys announced last Tuesday that global smartphone shipments in the second quarter of this year decreased by 11% compared to the same period last year, marking the sixth consecutive quarter of decline. The sluggish demand has forced industry leaders like Apple and Samsung to reduce their sales.
However, Canalys pointed out that the smartphone market is showing early signs of recovery. Phones are starting to clear inventory, and suppliers are prioritizing the clearance of old models to make room for new releases. In addition to Samsung and Apple, which hold the first and second positions in terms of market share, the decline in shipments of other brands indicates signs of improvement. Most suppliers' inventories have returned to healthier levels, and the macroeconomic situation is stabilizing.