According to Apple analyst Ming-Chi Kuo, the average selling price of the iPhone 14 series could increase by up to 15 percent compared to the iPhone 13 lineup.
The base model iPhone 13 Pro and Pro Max currently start at $999 and $1,099, respectively. On the other hand, Apple sells the iPhone 13 mini for $699, while the regular iPhone 13 costs $799. However, a recent tweet from Kuo suggests a slight price bump.
Although he didn’t reveal the exact pricing, the Apple analysts suggests the iPhone 14 lineup’s ASP could range from $1,000 to $1,050. What’s responsible for this price bump, you ask?
Kuo pointed out that the increased ASP could result from a price hike in the two Pro models. With a 10% price increase, the iPhone 14 Pro and Pro Max could start at $1,099 and $1,199, respectively.
Besides the price hike in Pro Models, Kuo blamed the increased ASP for a higher shipment proportion. He added that Foxconn’s revenue could benefit significantly from the higher pricing.
Hon Hai/Foxconn is one of the winners of the increased ASP of iPhone 14 series. I estimated iPhone 14 series ASP would increase by about 15% (vs. iPhone 13 series ASP) to $1,000-1,050 (USD) due to two iPhone 14 Pro's price hikes & higher shipment proportion. https://t.co/UgiW0kom4F
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) August 10, 2022
How Foxconn Can Benefit from a Higher iPhone 14 Series ASP
Foxconn — also known as Hon Hai — is one of the prominent Electronic Manufacturing Service firms for the iPhone 14 lineup.
According to the analyst, the company is responsible for roughly 60 to 70% of order proportion. As a result, an increased average selling price for the iPhone 14 series may significantly boost Foxconn’s revenue.
Kuo’s tweet reads:
“Hon Hai is the major EMS for iPhone 14 series (with a 60-70% order proportion), so its revenue will markedly benefit from an increased iPhone 14 series ASP. No wonder Hon Hai raises full-year performance to “growing” from “roughly flat.”
Earlier in the month, Kuo revealed Foxconn’s plan to boost iPhone production by opening a new production facility in India. What’s more, the new factory is expected to ship the entry-level iPhone 14 model at launch.
Based on previous launches, Apple is expected to announce the iPhone 14 lineup in September.