08/06 Update below.This article was originally published on August 3
Apple’s leaks unanimously agree on one thing: iPhone 14 models are getting more expensive. That is, until now.
in a new blog postAnonymous leaker Ranzuk revealed that Apple “has decided to freeze the launch price of the base iPhone 14 model by decision of top management”. Given Lanzuk’s track record, we have every reason to believe this.
Lanzuk explained that Apple’s decision was based on “a stagnant global mobile phone market and declining demand … so prices for the base model were frozen despite some price hikes”.
Other leakers have detailed these factors, including rising component prices due to shortages and Apple’s upgrade of several key elements of the iPhone 14 lineup. Most notably, a new front-facing camera module from LG Innotek that is said to be three times the price of its predecessor.
Ranzuk is no doubt aware of the shock and potential skepticism his news will generate, and emphasizes that his information comes from rock-solid sources at “major financial institutions in the United States.” Additionally, Lanzuk’s track record deserves respect.Although insiders have miss occasionallyApple and Samsung devices have many accurate leaks in the past year.
Update 08/05: More information about the iPhone 14 launch has leaked, and here’s more good news.Influential analyst and industry insider Ming-Chi Kuo Report Apple has managed to ramp up production of the upcoming base model in India ahead of the launch.
“Foxconn’s iPhone production base in India will ship the new 6.1-inch iPhone 14 for the first time in 2H22 at about the same time as China (India used to lag behind by a quarter or more),” Kuo explained. “In the short term, there is still a considerable gap between India’s iPhone capacity/shipment and China’s, but this is an important milestone for Apple to establish a non-Chinese iPhone production base.”
My contacts believe that this strategy will pay off immediately, with Apple able to stock up on its September iPhone 14 release. This is in stark contrast to the ongoing supply chain issues facing the iPhone 14 Max.While Kuo expects the new 6.7-inch model to launch alongside the rest of the series, Ross Young, CEO of Display Supply Chain Consultants (DSCC), warned that “iPhone 14 Max panel shipments [are] Still behind by August. ”
So if you’re going to buy Apple’s most affordable big-screen iPhone yet, I suspect you’ll have to act fast when they hit the market.
08/06 Update: Speaking to me today, popular tipster AppleLeaksPro says the new prices are in line with what he’s been hearing for months. “Pros are much more expensive to manufacture,” LeaksApplePro explained, citing a new punch-hole display, an upgraded 48MP camera, a stainless steel chassis (which has been a cost differentiator since the iPhone XS), and an A16 chipset.
“There are a lot of differences,” the leaker told me, and Apple is expected to focus primarily on the iPhone 14 Pro models at launch. “My guess is that Apple will hardly talk about the iPhone 14.”
AppleLeaksPro says the driving force behind all of this is “differentiation.” This ties into similar moves Apple has made in recent years to increase the price and feature differences between standard and Pro models of iPads, Macs and MacBooks. The strategy has proven successful, even if it’s hard to pinpoint any features that would make the iPhone 14 Pro models objectively pro-oriented.
All of this means the leaking community is split. Last month, Wedbush’s leading analyst explained that price increases across the range are inevitable because “prices have been rising across the supply chain, and Cupertino needs to pass those costs on to consumers at this launch.” By.”
As far as I understand, there is some truth to both positions.Pressure on the supply chain is increasing costs, with several new components in the iPhone 14 lineup (especially new front camera).
That being said, as far as I can tell, Apple is also determined to make 2022 the year to drive differentiation between Pro and non-Pro models, even if it means taking on some of the cost increase of the standard models. That’s a big factor in how the iPhone 14 is similar to its predecessor in terms of design and performance, and the upgrade is likely to be smaller than any previous-generation iPhone upgrade.
As such, this is expected to be one of the most controversial iPhone launches in recent years.
If correct, Lanzuk’s claim would mean the iPhone 14 keeps its $799 asking price (rather than jumping to $899), which also raises hopes that the new iPhone 14 Max will also cost $100 less to $899. These price points make sense given Apple’s determination to widen the feature and performance gap with the iPhone 14 Pro models, which are still expected to rise:
- iPhone 14 Pro – $1099 (iPhone 13 Pro $999)
- iPhone 14 Pro Max – $1199 (iPhone 13 Pro Max $1099)
Furthermore, I think Lanzuk’s claim still equates to a valid $100 price increase across the range. That’s because the $799 iPhone 14 will replace the $699 iPhone 13 Mini as the entry-level model, and the $899 iPhone 14 Max will replace the $799 iPhone 13. These increases are also easier for Apple to sell to customers, given their respective screen sizes have increased.
Is the iPhone 14 lineup worth it? Design, camera, and performance upgrades on the Pro models do, but with a potential transition from Lightning to USB-C in 2023, I still urge caution if you don’t have to upgrade this year.
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