Apple

‘Significantly lower than expected’ iPhone 14 Plus pre-orders suggest Apple’s strategy of ditching the ‘mini’ for a larger version of the new phone is a failure, says prominent Apple analyst

iPhone 14

Reuters

  • A prominent Apple analyst said that the low pre-orders of the iPhone 14 Plus reflect badly on Apple’s strategy.

  • Ming-Chi Kuo said the iPhone 14 and 14 Plus will be in stock when they’re released, indicating low demand.

  • The larger iPhone 14 Plus replaces the previous, smaller iPhone 13 mini in Apple’s new lineup.

Noted Apple analyst Ming-Chi Kuo wrote in a Medium blog post that the company’s iPhone 14 and 14 Plus pre-orders point to a failure in its product segmentation strategy.

Last week, Apple announced the new iPhone 14 series. They became available for pre-order on September 9, and the iPhone 14, iPhone 14 Pro and iPhone 14 Pro Max launched on September 16. The iPhone 14 Plus is available a little later on October 7.

Apple has not released pre-order numbers for the devices. However, Kuo, an analyst at TF International Securities known for his strong track record in predicting Apple’s future developments, looked at early pre-order indicators for the company’s current iPhone lineup to get a sense of how demand is fluctuating.

Notably, Apple chose to offer the base iPhone model in a standard and larger “Plus” version — a change in strategy from the base iPhone 13 models, which were available in standard and “mini” device sizes.

Looking at availability and shipping forecasts, he said the iPhone 14 Pro Max and Pro are showing “good” and “neutral” results, respectively. However, pre-orders for the two standard models — the iPhone 14 and 14 Plus — are “poor,” according to Kuo.

“The pre-order result of this new product is significantly lower than expected, which means that Apple’s product segmentation strategy for standard models is failing this year,” Kuo said of the iPhone 14 Plus.

An Apple spokesperson did not respond to Insider’s request for comment prior to publication.

Kuo said stocks of the iPhone 14 and 14 Plus will be available at retail stores when they launch, “reflecting weak demand.” Both phones are showing signs of weaker pre-orders than the iPhone SE 3 and iPhone 13 mini, according to Kuo’s analysis, and shipping times for the iPhone 14 and 14 plus are shorter than expected arrivals for the iPhone 13 and 13 mini.

If demand for the iPhone 14 and 14 Plus doesn’t improve, Kuo said Apple is likely to lower its November supply estimates for both phones. If it does, Kuo said it could negate the company’s revenue growth.

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