Whether or not the iPhone 14 is selling well is not yet known. Apple has not yet announced its latest product, but rumors are starting to surface. One source says that trade-in prices for the iPhone 13 are dropping faster than expected. Another says that Apple’s price elasticity is better than expected.
Apple may cut shipment forecasts
Earlier this month, Apple warned that it may have to cut shipment forecasts for its iPhone 14 and 14 Plus models because of production issues at a Chinese plant. The company also warned that its sales forecasts would be skewed by supply chain issues, a virus outbreak, and the year-end shopping season.
The biggest impact of the cut would be on the iPhone 14 Pro. Apple had planned to make 90 million units of the device by 2022, but revised that figure down to 87 million. Apple said it was not able to cover the price increases in the US and China, and was forced to reduce production. The company has also reportedly opted to cut production of the iPhone Mini in favor of the Plus model.
Trade-in prices are falling twice as fast as iPhone 13 models
Several wireless carriers have offered special promotions for consumers to trade in their current iPhones for a new model. While the deals may not be available for long, they’re worth checking out.
Among other things, the iPhone 13 has a bigger screen, a faster processor, and a better dual-lens camera system. That’s not to mention the improved battery life.
For a limited time, Verizon customers can get up to $1,000 off a new iPhone when they trade in their current model. They’ll also receive a bill credit over a 24-month period. Depending on the model, this may include a free Beats Studio Buds set.
While Apple does not change the design of their smartphones that often, they do lean on design teams to bring new features to the table. Among these are the aforementioned dual-lens camera system, and the improved night mode.
iPhone 14 Plus has a 6.7-inch Super Retina XDR display
Among its many upgrades, the new iPhone 14 Plus has a large 6.7-inch Super Retina XDR display with a 2 million-to-1 contrast ratio. It also supports HDR and Dolby Vision. This means that your photos and videos will have rich, vibrant colors and impressive clarity.
The Plus also offers a larger canvas for on-the-go photo and video editing. With an improved A15 Bionic processor, improved processing power across the system and a 5-core GPU, the Plus can support a variety of tasks with ease. It also includes the advanced Photonic Engine, which delivers brighter colors and more detailed textures in mid- to low-light scenes.
The iPhone 14 and iPhone 14 Plus also feature a dual-camera system. Both models have a 12-megapixel primary camera with a larger f/1.9 aperture, along with a 7-megapixel telephoto camera with a wide f/2.4 aperture.
Apple’s price elasticity is better than originally thought
Among the various enigmas of modern day economics, price elasticity is a particularly tricky topic to pin down. It’s easy to dismiss a firm’s price changes as mere price increases, but in reality, consumers are more apt to buy a product that is of more value to them. In a competitive industry, price elasticity of a product is an important measure of brand value. Especially in moderately competitive sectors, price elasticity is an important factor in gauging a firm’s true competitive advantage.
As you can imagine, Apple has a competitive advantage in this particular market, as it controls demand for a slew of products. As such, the company is able to charge a premium for its wares, which increases the revenue it makes. While it’s impossible to pinpoint a single number, the best estimates of the company’s price changes for the current fiscal year are in the neighborhood of 6% to 7%.
Apple’s iPhone 14 Pro lineup has more features than the base models
Those looking for an upgrade should look no further than the Apple iPhone 14 Pro. The new flagship smartphone has improved cameras, a new display, and new features.
The iPhone 14 Pro is equipped with a 48-megapixel primary camera sensor. This sensor has improved light gathering capabilities, and is capable of taking better low-light photos. The sensor is a whopping 65% larger than the one in the iPhone 13 Pro. It also features an f/1.9 aperture, which allows for better low-light performance. The sensor is also capable of shooting 4K video at 30fps.
The TrueDepth front-facing camera also supports autofocus. It has an improved f/1.9 aperture, a redesigned Adaptive True Tone flash with nine LEDs, and a Portrait Mode with Portrait Lighting. This model’s sensor also features an improved telephoto lens with a wider range of focus.