Apple CEO Tim Cook says iPhone 14 Pro demand exceeds supply

AppleInsider

Apple is selling as many iPhone 14 Pro models as it can make, and the company is benefitting from savings thanks to reduced supply costs, says CEO Tim Cook.

Apple CEO Tim Cook at Apple Park

On the heels of Apple's third-quarter earnings report, Apple CEO Tim Cook spoke with CNBC to provide commentary on the quarter. The information was shared on a live segment of the "Closing Bell" program.

When asked about iPhone demand, Tim Cook responded stating that the iPhone 14 Pro and iPhone 14 Pro Max are supply-constrained and Apple is trying to keep up with demand. This coincides with previous reporting suggesting that the standard iPhone 14 models were easier to obtain for customers.

"We're constrained right now on the 14 Pro and Pro Max and have been from the day we launched," Cook told CNBC. "And so obviously we're chasing supply there and trying to get as much supply as we can to solve the demand."

Cook was also asked about cost cutting measures being taken by the company. He repeated a previous statement, saying that hiring was more deliberate.

"We are hiring deliberately," Cook answered. "And so we've slowed the pace of hiring. And we're going after cuts and our savings into commodities."

The second half of that statement suggests that Apple is saving money through its supply chain. It gets to save thanks to market demand lowering, which lowers the cost of products like processors.

Apple reported $90.15 billion of revenue in the third quarter of 2022 -- up 8% year-over-year. The iPhone was responsible for $42.6 billion despite the iPhone 14 lineup being on the market for only eight days of that quarter.

Read on AppleInsider

netrox

Glad the price of iPhone didn't go that high. It's still commending respectable prices. 

chadbag

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

Madbum

chadbag said:

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

That is TMOBILE stock which they already paid Apple full price for which they sell to their USA customers, same with ATT and Verizon. Apple considers the phone you bought from TMOBILE as already unit sold by them.

 The Nov 17-24 is Apple stock which is world wide demand story 

part of the reason the Apple stock is taking so long is because carriers like TMOBILE likely ordering by the millions of units each week

tyler82

chadbag said:

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

You can get a new battery replaced by Apple for only $69
https://support.apple.com/iphone/repair/battery-replacement

netrox

tyler82 said:

chadbag said:

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

You can get a new battery replaced by Apple for only $69
https://support.apple.com/iphone/repair/battery-replacement

shhh... let them enjoy the new camera! 

Madbum

tyler82 said:

chadbag said:

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

You can get a new battery replaced by Apple for only $69
https://support.apple.com/iphone/repair/battery-replacement

Lol, people are free to keep their old phones or get new ones. Who are you to judge? And an IPhone X with a new battery is not the same as IPhone 14 pro unless you think a Toyota Corolla  drives the same as a BMW M3

fred1

There also seems to be a shortage of the 2022 SE. There haven’t been any available “at the 12 stores nearest me” for at least two weeks now. 

I don’t understand how Apple can underestimate demand so badly. 

ireland

The oldest sales trick in the book to drive sales. Truth is we have no idea if demand is actually exceeding supply and how many were made. The non-Pro iPhone 14 starts at €1,029 and I’ve reached my line and I’m now beginning to recommend against people I know buying an iPhone. Base model Pixel and Pixel Pro are €380 and €440 cheaper than iPhone. Greedy people running Apple. Hope more and more people switch away from iPhone and I don’t really trust Tim’s statement to be entirely genuine here.

ireland

fred1 said:

There also seems to be a shortage of the 2022 SE. There haven’t been any available “at the 12 stores nearest me” for at least two weeks now. 

I don’t understand how Apple can underestimate demand so badly. 

Scarcity to help push demand. Sales psychology 101. Truth is we have no idea how many they have made or shipped. 

fred1

ireland said:

fred1 said:

There also seems to be a shortage of the 2022 SE. There haven’t been any available “at the 12 stores nearest me” for at least two weeks now. 

I don’t understand how Apple can underestimate demand so badly. 

Scarcity to help push demand. Sales psychology 101. Truth is we have no idea how many they have made or shipped. 

I understand and agree, but in my case it’s forcing me to look elsewhere and not buy a new iPhone at all. A few days’ shortage is one thing, but over two weeks is bordering on never being available to buy. 

muthuk_vanalingam

fred1 said:

ireland said:

fred1 said:

There also seems to be a shortage of the 2022 SE. There haven’t been any available “at the 12 stores nearest me” for at least two weeks now. 

I don’t understand how Apple can underestimate demand so badly. 

Scarcity to help push demand. Sales psychology 101. Truth is we have no idea how many they have made or shipped. 

I understand and agree, but in my case it’s forcing me to look elsewhere and not buy a new iPhone at all. A few days’ shortage is one thing, but over two weeks is bordering on never being available to buy. 

My assumption is that Apple wants to limit the sale of cheaper iPhone SE model to improve their margins. So they make it available in limited quantities. Whoever is unlucky (like you who are unable to purchase it), Apple expects most of them to buy a higher priced iphone whichever is available in their lineup (iPhone 13, 13 mini etc). Apple expects a very small percentage of their userbase to switch to competitors. In my view - with competition sucking so much, Apple can confidently take this approach with little/no impact to their top-line.

fred1

muthuk_vanalingam said:

fred1 said:

ireland said:

fred1 said:

There also seems to be a shortage of the 2022 SE. There haven’t been any available “at the 12 stores nearest me” for at least two weeks now. 

I don’t understand how Apple can underestimate demand so badly. 

Scarcity to help push demand. Sales psychology 101. Truth is we have no idea how many they have made or shipped. 

I understand and agree, but in my case it’s forcing me to look elsewhere and not buy a new iPhone at all. A few days’ shortage is one thing, but over two weeks is bordering on never being available to buy. 

My assumption is that Apple wants to limit the sale of cheaper iPhone SE model to improve their margins. So they make it available in limited quantities. Whoever is unlucky (like you who are unable to purchase it), Apple expects most of them to buy a higher priced iphone whichever is available in their lineup (iPhone 13, 13 mini etc). Apple expects a very small percentage of their userbase to switch to competitors. In my view - with competition sucking so much, Apple can confidently take this approach with little/no impact to their top-line.

What you write makes a lot of sense. And in the case of my wife and myself, we’re “stuck” in the Apple ecosystem so we’ll most likely end up buying the SE from a third-party seller. Buying a more expensive model isn’t an option. It’s just annoying that certain products aren’t available to buy in an Apple Store. I had a similar problem last year buying my 6th gen iPad Mini. Alas . . .

baconstang

Demand outstrips supply?
You could say the same for the 14 mini

chadbag

Madbum said:

chadbag said:

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

That is TMOBILE stock which they already paid Apple full price for which they sell to their USA customers, same with ATT and Verizon. Apple considers the phone you bought from TMOBILE as already unit sold by them.

 The Nov 17-24 is Apple stock which is world wide demand story 

part of the reason the Apple stock is taking so long is because carriers like TMOBILE likely ordering by the millions of units each week

Yes this is being typed on the new one that came today. My neighbor, who is a regional manager here for T-Mobile was surprised when I told him it had shipped the day after ordering.  He said it is usually the other way around and Apple can deliver more quickly than they can. 

Customers don’t have to buy directly from Apple or from carriers.   They have a choice.  This time around the carrier seems to be the better place.  

Apple is not creating a scarcity of SE 2022 models to drive people to more expensive phones.  They try and model demand and then produce to that model and if the model is off they end up with not enough of the model that is really in demand but which they modeled as being not so popular.   And perhaps an over abundance of another model of phone where they thought it would be super hot and the demand is lower than forecast.   

Apple doesn’t care which iPhone you buy as long as you buy and iPhone. They know you’ll be back and be buying apps and subscriptions and eventually another, perhaps more expensive replacement in a few years.  

chadbag

tyler82 said:

chadbag said:

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

You can get a new battery replaced by Apple for only $69
https://support.apple.com/iphone/repair/battery-replacement

yeah, you can if that is what you want, and you can buy a whole new phone. Whatever floats your boat.

  I had planned to get a new phone in the spring after over 4 years use of the XS Max anyway but with the current nose dive in battery on it and T-mobile offering me $400 trade in as is (physically perfect condition except the battery life), some up front and some over time, with their 0% financing on the rest over 24 months and my Chase 5% cash back in points on Cell bills (and since the payment is wrapped in the cell bill it counts) it works out to be an advantageous time to just upgrade. 

tyler82

chadbag said:

Madbum said:

chadbag said:

Interesting.   Yesterday I decided to replace my XS Max with a 14 Pro Max as the battery has declined and recently it has been cratering early during the day, sometimes getting into the red  by lunch.  

The online Apple Store store was listing Nov 17-24 as the estimated time of shipment.  I ordered directly from T-Mobile yesterday and I got the ship notification today and UPS estimates a deliver tomorrow 

That is TMOBILE stock which they already paid Apple full price for which they sell to their USA customers, same with ATT and Verizon. Apple considers the phone you bought from TMOBILE as already unit sold by them.

 The Nov 17-24 is Apple stock which is world wide demand story 

part of the reason the Apple stock is taking so long is because carriers like TMOBILE likely ordering by the millions of units each week

Yes this is being typed on the new one that came today. My neighbor, who is a regional manager here for T-Mobile was surprised when I told him it had shipped the day after ordering.  He said it is usually the other way around and Apple can deliver more quickly than they can. 

Customers don’t have to buy directly from Apple or from carriers.   They have a choice.  This time around the carrier seems to be the better place.  

Apple is not creating a scarcity of SE 2022 models to drive people to more expensive phones.  They try and model demand and then produce to that model and if the model is off they end up with not enough of the model that is really in demand but which they modeled as being not so popular.   And perhaps an over abundance of another model of phone where they thought it would be super hot and the demand is lower than forecast.   

Apple doesn’t care which iPhone you buy as long as you buy and iPhone. They know you’ll be back and be buying apps and subscriptions and eventually another, perhaps more expensive replacement in a few years.  

This is the most rational response to the article I’ve read so far. 

macplusplus

fred1 said:

There also seems to be a shortage of the 2022 SE. There haven’t been any available “at the 12 stores nearest me” for at least two weeks now. 

I don’t understand how Apple can underestimate demand so badly. 

Don't worry they don't underestimate the SE demand, they estimate it well enough to pull it back until the iPhone 14 sales reach some nice-looking figures. Troubles inherent to uncontrolled growth...