This year Apple has widened the gap between iPhone 14 Pro and iPhone 14 base models. With only up to $200 difference in price, the Pro models offer a faster A16 processor, advanced display with 120Hz ProMotion, Always-On and Dynamic Island tech, 48MP upgraded camera, longer battery, and more. And consumers are very mindful of the tech disparity in the iPhone 14 lineup.
Even in an economy marred by inflation, more consumers are opting for iPhone 14 Pro models and analysts believe that is due to carrier deals, along with modest upgrades in iPhone 14 base models.
Unmoved by the modest upgrades in iPhone 14, consumers opt for iPhone 14 Pro
For consumers upgrading from iPhone 12 or iPhone 13, the new iPhone 14 base models do not offer compelling changes. Except for Crash Detection, Emergency SOS via satellite, camera upgrade with Photonic Engine, and 6.7-inch iPhone 14 Plus screen size, the base models offer the same experience as previous iPhone 13 models which have pushed more buyers towards iPhone 14 Pro.
Dan Ives, managing editor of equity research at Wedbush Securities said:
“In terms of the base [iPhone 14] compared to the price points, it’s just too compelling to do [iPhone 14 Pro].”
As different trade-in and payment plans offered by carriers like Verizon, AT&T, and T-Mobile, allowed consumers to open up their wallets for the higher-end iPhones. Ives added that;
“The carrier discounts and promotions are significant. With $800 to $1,000 off new iPhones, carriers are incentivizing consumers to opt for pricier Pro and Pro Max phones.
Consumers don’t feel the price difference between the $800 iPhone 14 and $1,000 iPhone 14 Pro thanks to [these] promotions.
Agreeing with the analyst, Bloomberg reports:
“The data continues to point to robust demand for the iPhone 14 Pro and Pro Max, which could have a materially positive impact for both mix and margins,” Amit Daryanani, an analyst at Evercore ISI, said in a report this week […]
That’s left users with less reason to upgrade to a basic iPhone 14, but plenty of incentive to pay a little more for the Pro. A flurry of carrier promotions and trade-in offers also may coax consumers into buying a glitzier model.