If you didn’t follow the leaks ahead of Apple’s event, you probably weren’t prepared for just how different the iPhone 14 and iPhone 14 Pro turned out to be. In years past, the iPhone 14 probably would have been called the iPhone 13S. The iPhone 14 looks identical to the iPhone 13, and even uses the same chip. Meanwhile, Apple introduced a number of major features, design changes, and upgrades on the iPhone 14 Pro and Pro Max.
According to TF International Securities analyst Ming-Chi Kuo, this is just the beginning. Kuo believes that the feature gap between the standard iPhone models and the Pro models may be even more pronounced on the iPhone 15 next year.
iPhone 15 lineup feature gap will be even wider
According to Kuo, we should expect to see “more differentiation” between standard and Pro models in the future. Apple’s goal would be to increase the allocation of Pro models it ships. This will, in turn, raise the average selling price of the iPhone lineup.
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Taking a step further, Apple will also start creating differentiation between the iPhone 15 Pro Max and the iPhone 15 Pro. It’s the best practice via a precise product segmentation strategy to generate more sales/profits in a mature market.— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) September 9, 2022
In a follow-up tweet, Kuo also noted that Apple will do more to differentiate the Pro and Pro Max as well. It is unclear how the company plans to accomplish this. Perhaps the iPhone 15 Pro Max will be the only model with the rumored periscope lens.
Presumably, iPhone 14 sales will guide Apple’s strategy. Kuo previously claimed that 85% of the orders Apple placed are for iPhone 14 Pro and iPhone 14 Pro Max models. Apple clearly expects the Pro models to significantly outperform the standard models this fall. After all, the only way to experience the new Dynamic Island is on a Pro.
Kuo also explained why Apple segments its phones: “One of reasons why Apple can do the new product segmentation strategy is even though hardware innovation has become more challenging and the market has matured, Android camp still poses no threat to Apple in the high-end market due to brand value & ecosystem disadvantages.”
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