The prices of new iPad products that have been low-keyed on the shelves have increased across the board, and the prices of spot products have also increased to varying degrees. The new iPad has not been upgraded much, but the price has risen. This move immediately caused many “fruit fans” to be dissatisfied and give up on changing their phone at this time.
Many analysts who have followed Apple for a long time, interviewed by the reporter, believe that the price increase of the iPad is related to the cost-side pressure caused by exchange rate changes and other reasons.
Apple receiving market pressure
On the other hand, Apple’s core product, the mobile phone, is also receiving market pressure. According to several dealers, the wholesale price of Apple mobile phones has decreased since October. On e-commerce platforms such as JD.com, it is rare that the Apple 14 series, which has just been on the shelves for a month, has already participated in a price reduction.
Counterpoint senior analyst Ivan Lam told reporters that the main reason for the poor sales of Apple mobile phones is the sluggish consumer market, and consumers are not willing to change phones. In this case, dealers and platforms must benefit consumers to maintain sufficient cash flow. Many analysts said that looking at the entire mobile phone market, the sales of mobile phones in Q4 are expected to increase slightly compared to Q3.
Cost pressure is the culprit of the IPad price hike
It is reported that on the evening of the 18th, Apple’s official website officially released the iPad 10 and the new iPad Pro, with the starting prices increasing by 82 USD and 110 USD to 55 USD and 938 USD, respectively. At the same time, the prices of old products such as the iPad 9, the iPad mini 6, and the iPad Air 5 have also risen to vary degrees.
A well-known electronic product testing blogger believes that there are not many new technologies for these two new products, and the changes are mainly due to the routine update o the previous configuration. “Fruit fans” are not overjoyed with the new iPad.
Ipad Net Sales
The iPad hasn’t done well this year among Apple’s various product lines. According to Apple’s financial report, from September 2021 to June 26, 2022, iPad net sales were $21.118 billion, down 6% year-on-year. According to IDC data, in the second quarter of 2022, Apple’s tablet shipments reached 12.6 million units, with a market share of 31%, a decrease of 2.89% year-on-year. In these circumstances, the iPad price increase this round is highly contentious.
“The main reason for the price increase is the exchange e rate,” Ivan Lam, a senior analyst at Counterpoint, told the Financialssociated Press. He said that most of Apple’s materials are currently in US dollars. In the case of the skyrocketing US dollar and the continuous increase in inflation, Apple’s cost pressure is also increasing, as is the company’s helpless move to increase the price of the iPad.
What is the Current Update?
Recently, the dollar exchange rate has been trend is quite surprising. As of October 21, the yen has fallen by more than 30% this year, the euro has fallen by about 16%, and the renminbi has fallen by about 14%. In this context, the current price of an iPad in the United States has not increased.
In addition, Ivan believes that the repeated domestic epidemic this year and the increased demand for online courses are line-con reasons es is also why IPad can “reassure” the price increase in the domestic market.
He said that the overall market situation is not very good this year, but the sales of tablet computers in the Chinese market have risen slightly because many classes and work must be done on computers or tablets.
According to Canalys statistics, in the first half of the year, when the sales of consumer electronic products such as PCs and mobile phones were sluggish, domestic tablet PC shipments in Q2 increased by 4.3% year-on-year.
Regardless, this round of price hikes is bound to impact the total sales of iPods.
A senior analyst in the TMT industry at the Head Leopard Research Institute told reporters that a wave of sales of old iPads had been stimulated during the 2020-2021 epidemic. Starting from the supply and demand model, the current price increase will directly reduce demand. In addition, Huo Hansong is not optimistic about the future sales of the iPad. He said that in the case of overdraft sales in the previous two years, it is expected that the sales of tablet PCs will remain sluggish in Q4.
14 series prices fell across the board
On the other hand, the Apple 14 series mobile phones just launched in September are facing a bigger test.
Several Huaqiangbei mobile phone dealers consulted by the reporter told reporters that the recent 14 series mobile phone distribution prices have continued to decrease.
They can be purchased at lower prices than the official price, no longer the “rush purchase” in previous years. E-commerce platforms such as JD.com and Pinduoduo have also launched preferential activities such as “over 4,000 minus 600”.
According to a quotation from a large dealer on October 21, the Plus with the most price reduction can already be purchased at a price lower than the official price by more than 138 USD, and the more “value-preserving” Pro and PM can also be purchased at the original price.
“Although the final 14 series release data has not yet been released, according to the company’s monitoring, the performance of the 14 series is indeed worse than that of the 13 series,” Ivan said.
According to the data released by “fruit chain” Sunny Optical in October, the company’s mobile phone lens shipments in September were 95.56 million pieces, a month-on-month increase of 3.2% and a year-on-year decrease of 27.9%; mobile phone camera module shipments were 36.933 million p and eces, a month-on-month decrease. It of 4.6%, a year-on-year decrease of 31.2%, it can be seen that although the sales of mobile phones were slightly boosted by the launch of new phones in September, they still fell sharply compared to previous years.
Ivan believes that the biggest reason for the cold sales of the 14 series is the current downturn in consumer electronics, and consumers’ demand for replacement is not strong. Although Apple did not increase the price of the entry-level 14 series mobile phones because of rising costs, it is still difficult to beat the sluggish environment.
In this case, dealers and e-commerce platforms can only give up part of the profit promotion to achieve the purpose of cash flow turnover and sales data boost at the end of the year.
In addition to the environmental factors of sluggish consumption, Huo Hansong told reporters that too few upgrades of new mid-to-low-end mobile phones are also one of the reasons why the sales volume is hard to beat the 13 series.
New features and new designs are good?
“New features and new designs are the core focus of consumers on the new iPhone models every year, and the features and designs that attract consumers this year are the “smart island” design of the screen on the iPhone 14 Pro and Pro Max ad the cameras with improved performance.
The new series The highlights of the mid-to-low-end iPhone 14 and 14 Plus are not outstanding, and the chips also use the A15 chip on the 13 series, so there is no rush to try early adopters in the low-end. ” Huo Hansong further informed reporters.
In the first-day launch survey of the Apple 14 series by a reporter from the Financial Associated Press, it was also found that most could be sold”scalpers” that can sell at an increased price are Pro Max and Pro products, while the 14 has no “market”. On the second day of the launch of the iPhone 14 Plus in early October, all models could be purchased for more than 41 USD less than the official price.
As the sales of Apple 14 w re cold, in the secondary market, the “fruit chains” whose stock prices briefly soared at the end of August also began to fall and fall endlessly.” As of the close on October 21, Luxshare Precision (002475. SZ) fell nearly 30% from its peak at the end of August; Goertek (002241. SZ) fell about 34%, and Lens Technology (300433. SZ) fell about 26%.
However, for the next consumer electronics market represented by mobile phones, many analysts consulted by the reporter expressed their optimism.
He told reporters that in Q4, the world would usher in a promotional season, such as China’s “Double Eleven,” foreign “Black Friday.” Holiday promotions, so it is expected that the sales of mobile phones in Q4 will be driven to achieve a certain degree of growth, and the inventory will be increased. Consumption, coupled with the release of new mobile phones by many mobile phone manufacturers in Q3, the consumer electronics industry chain is also expected to be boosted.