In new tweets, TF International Securities analyst Ming-Chi Kuo estimates that the “iPhone 14 series ASP [average selling price] will increase by around 15% over the ASP of the iPhone 13 series.” Yes, 15% is significantly higher than previous price leaks and has raised alarm for a possible $1300 entry-level iPhone 14 Pro Max. But the full picture is a little more complicated. Apple iPhone 14 Pro Max concept shows expected higher price of $1199 @VadimYuryev @Shaileshhari03 Kuo explains that the average ASP for iPhone 14 models will be around $1,000-$1,050 “due to the two iPhone 14 Pro price increases and the higher shipping rate.” Breaking this down is hard, but Kuo’s numbers show that the ASP of the iPhone 13 series was closer to $900. That means customers can expect to pay, on average, about $150 more when they buy an iPhone 14 compared to an iPhone 13. On the surface, that’s one of the biggest jumps in ASP in iPhone history. Additionally, Kuo says more people will buy iPhone 14 Pro models, despite their price hikes. How will Apple achieve this? It’s a classic case of push and pull. First, in an effort to “differentiate” Pro and non-Pro models / increase customer sales, Apple will equip iPhone 14 Pro models with more exclusive upgrades than ever before, creating a clear “pull”. With the combination of functionality and desirability, Apple is expected to raise prices by $100. This will raise the starting prices for the iPhone 14 Pro and iPhone 14 Pro Max to $1099 and $1199, respectively. Leaked schematics suggest that the iPhone 14 will be almost identical to the iPhone 13 MySmartPrice The second is the push because there is likely to be a noticeable disappointment in the standard iPhone 14. The base model will only offer the most incremental upgrades of the iPhone 13, pushing users to buy the more expensive Pro models. Third, much of the heavy lifting will be done by the iPhone 14 Max. This new $899 6.7-inch model will replace the $699 iPhone 13 Mini. That’s a $200 price difference, but a relatively small $100 increase for disappointed iPhone 14 buyers who are now looking for something more. Additionally, the Max will sit above the $799 iPhone 14, meaning the entry point to the new models has also increased by $100. Factor in all of these changes and a $150 increase in average spend per customer makes a lot of sense. So if you’re committed to buying an iPhone 14 this year (and with USB-C coming in 2023, I’d suggest you not be), don’t be surprised if you end up spending a lot more than you planned.
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