iPhone 14 launch is undergoing a supply chain Scare; but a BIGGER price problem awaits Apple
The iPhone 14 lineup is facing a supply chain slowdown due to COVID-19 restrictions in China. But it appears that a bigger problem might be awaiting Apple. And it has to do with the iPhone 14 price game.
The iPhone 14 development timeline has not exactly been favorable for Apple. The tech giant is facing significant supply chain issues as its suppliers in China are struggling to reopen amid strict COVID-19 restrictions, impacting the manufacturing timelines. This can also delay the iPhone 14 launch timeline, however at the moment its effect is not clear. But that's just one of the many things going wrong for the Cupertino-based company. Rumors have previously claimed that the iPhone 14 non-pro models may not get the new Apple A16 Bionic chipset and instead be equipped with a retooled A15 chipset. Some experts believe that Apple was forced to take this decision due to the global silicon shortage. But amid all of this, we haven't even addressed the biggest challenge for the upcoming Apple flagship – the iPhone 14 price game. Also read: iPhone 14 Launch date: Big setback for Apple fans
The concerns were revealed by Apple analyst Ming-Chi Kuo on Thursday, May 26. Taking to Twitter, Kuo first shared reassuring details regarding the ongoing supply chain scare for Apple. He posted, “My latest channel checks suggest that Apple has not changed the shipping plan for the iPhone 14 models since the Shanghai lockdown. iPhone 14 Max is running behind, but it's still under control currently, and suppliers can work overtime to catch up with the schedule”.
However, Kuo revealed his main concern regarding the iPhone 14 in the next tweet. He said, “I believe iPhone 14's challenges will come from the demand side instead of the supply side”. While there were no follow-up tweets to explain the meaning behind the cryptic tweet, it is believed that it was referring to the consumer driven demand, which could face a decline this year.
iPhone 14 launch to price: Multifold challenges await Apple
A report by TechRadar dived deep into this concern raised by Kuo and came up with some interesting inputs. Global inflation is rising quickly and even the US, a big market for Apple, is not exempt from it. With about 8% of inflation, the US is struggling to keep up with the rising gas prices. Another rising market in China is also going through a tough period with the lockdowns and it has resulted in tightening of the purse. At a time like this, an iPhone 14 can make a big dent in people's pockets. And the iPhone 14 pricing will be an issue as recent reports have shown that Apple might be increasing its front camera cost by three times, which would likely be passed on to the end customer. Also read: iPhone 14 leak reveals the MAIN reason why the Apple phone will cost you more; but is it worth it?
Further, with all the details known about the iPhone 14 non-pro models, it is not certain whether they would offer enough upgrade to make people want to spend money. However, there are a lot of uncertainties and unknown factors involved in this. We do not know anything for certain about the upcoming iPhone 14 lineup, be it the iPhone 14 price or the iPhone 14 launch date. It can be that all these leaks and speculations were not correct and Apple, like always, finds a way to exceed its sales parameters.
But Kuo's concerns are not without any reason and only time will show the kind of reception the upcoming Apple smartphones get.
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