Author Topic: New Apple Leak Reveals iPhone 15 Price Shock  (Read 95 times)

Offline javajolt

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New Apple Leak Reveals iPhone 15 Price Shock
« on: January 02, 2023, 03:18:15 PM »
01/01 Update below. This post was originally published on December 29th

iPhone 15 series leaks have revealed a number of potentially tempting upgrades, along with hefty price hikes. But now a new report claims that Apple may lower prices.

In a blog post, historically reliable industry insider yeux1122 reveals that Apple’s internal analysis of the underwhelming iPhone 14 and iPhone 14 Plus sales concluded that their decline is “well outside the predicted range” — even allowing for ongoing component shortages caused by the pandemic. And as a result, Apple will aggressively price its successors.

Flat-edge iPhone 15 Ultra concept based on leaks

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“The biggest problem is the price,” reports the insider. It makes sense. The $899 iPhone 14 Plus costs just $100 less than the iPhone 14 Pro, despite having an inferior screen, chipset, camera, and older design. With most buyers spreading purchase costs over a two-year service contract, the reason to go Plus instead of Pro is minimal.

Yeux1122 says Apple explored several options to counter this, including reducing the difference between iPhone 15 standard and Pro model features, but concluded that more aggressive pricing for standard models is the most likely strategy.

12/31 Update: Bad news for those hoping that Apple’s potential price cuts for standard iPhone 15 models could see the return of the Mini form factor. Since yeux1122 revealed Apple’s “aggressive” pricing strategy, significant chatter has built around how the company would achieve it.

Cutting the iPhone 15 Plus price has a shock-wave impact on the iPhone 15, iPhone 14 (which will likely remain on sale), and even the entry-level iPhone SE. As such, the idea that Apple could scrap the Plus and introduce an iPhone 15 Mini below the iPhone 15 makes a lot of sense. This would allow Apple to create a cheaper entry point to the range, widen the price gap to iPhone 15 Pro models and leave other prices unchanged.

However, AppleLeaksPro shot down this strategy, saying, “As far as I’m concerned, there are no plans to launch an iPhone 15 mini next year, in case you’re wondering.”

If this is correct, it is a shame. Not everyone loves big phones, and what Apple achieved in the Mini form factor was remarkable. Surprisingly poor sales eventually led to its cancellation, but market reports claim that iPhone 14 Plus sales are even lower.

This could have opened the door for Apple to deliver three iPhone sizes again because those who did buy the Mini loved it. It’s hard to make the same argument for the iPhone 14 Plus, where there are alternatives to Apple and Android. That said, I suspect it’s significantly easier to design a smartphone within a 6.7-inch form factor than a 5.7-inch one.

01/01 Update: Quotes from TSMC Chairman Mark Liu may have just leaked key performance information about Apple’s next-generation A17 chipset, headed to the iPhone 15 Pro and iPhone 15 Pro Max/Ultra. TSMC is Apple’s primary chip partner, and Liu spoke about the company’s product lines, confirming that mass production of 3-nanometer chips has begun at its Tainan campus in southern Taiwan.

Liu said demand for 3nm chips is “very strong,” and “Mass production of 3-nanometer chips is the fruit of decades of cooperation with the local supply chain.” But the giveaway came when Liu talked about the benefits of 3nm chips, saying their tests revealed they would outperform 5nm chips that require 35% less power.

While Samsung Foundry has already shipped the world’s first 3nm chips for cryptocurrency mining, the TSMC chips will be the first to be used for consumer devices, and Apple gets preferential access to the bulk of what TSMC produces. As a result, the M2 chips within the upcoming MacBook Pro line refresh are hotly anticipated to debut this new technology in the first quarter.

The timeline then leaves plenty of time for the transition to mobile for Apple iPhone 15 Pro and Ultra when they launch in Q3. This is not surprising, as 3nm almost launched the iPhone 14 before it was pushed back, but nothing was known about its performance and efficiency benefits until Liu’s comments.

Of course, how Apple uses these efficiency gains remains to be seen. It could decide to deliver big battery life improvements and a relatively minor performance bump or vice versa, though I suspect a middle ground would be the most logical option. Either way, Apple now has a level of flexibility it hasn’t enjoyed since the A14 became the first 5nm iPhone chip in 2020.

When the 3nm A17 filters down to the standard iPhone models in 2024, this efficiency gain will also give Apple the flexibility to reintroduce an iPhone Mini model. This move has already been shot down for 2023, but it is a size that is much more unique than the iPhone 14 Plus, and one that is unlikely to find a competitor from major Android smartphone manufacturers based on current market positions. That said, when Apple drops a device, it rarely looks back.

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The obvious move would be to drop the iPhone 15 Plus by $100 to $799, forcing the iPhone 15 to drop to $699. This raises the iPhone 14 (which will remain on sale) to $599. At that price, Apple risks cannibalizing sales of the $429 iPhone SE, which explains reports last week that the company is considering canceling the 2023 iPhone SE altogether.

It is interesting that a new flagship, the iPhone 15 Ultra, will be even more expensive than the iPhone 14 Pro Max, but yeux1122 also supports this, saying that Apple will also drive differentiation between it and the iPhone 15 Pro. Yeux1122 mentions material and camera differences, which ties into reports of the Ultra with a titanium chassis and dual front cameras.

Ultimately, any talk of price cuts will come as a shock, as it goes against multiple leaks that say Apple will raise, not lower, most iPhone 15 prices. That said, yeux1122 has a successful history of leaking information that goes against the grain.

In particular, the insider countered claims in March that the iPhone 14 would have slimmer bezels than the iPhone 13 — a week later, leaked schematics showed it. In August, yeux1122 said iPhone 14 prices would not increase, despite widespread reports, and Apple ended up freezing prices in its biggest markets. In September, the leaker also shared iPhone 14 Plus cases showing that ‘iPhone 14 Max’ branding rumors up until that point were wrong.

So, while the iPhone 15 Ultra may be the most expensive iPhone ever, yeux1122’s information suggests that buyers of standard iPhone 15 models will have more money in their accounts than expected.

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