Connect with us

Published

on

A series of iPhone 16s on display inside the Apple store at Tun Razak Exchange in Kuala Lumpur, Malaysia, on Sept. 20, 2024.

Annice Lyn | Getty Images News | Getty Images

One of the first things Steve Jobs did when he returned to Apple in 1997 was simplify Apple’s product lineup. At the time that meant four computers: Two laptops and two desktops, each in a pro and consumer version. 

“If we had four great products, that’s all we need,” Jobs said at a product launch in 1998.

Three decades later, Apple’s product lineup is much broader. The company in 2024 launched four iPads, four MacBooks, two desktop Macs, one Vision Pro headset, two Apple Watch models and three kinds of AirPods. But when it comes to iPhones, four remains the magic number. 

That’s how many iPhones the company has released each year since 2020, and in September, it released the iPhone 16, the iPhone 16 Plus, the iPhone 16 Pro and the iPhone 16 Pro Max.

Apple introduced the four-phone lineup because historically the company’s iPhone sales have seen the strongest growth when it expanded the lineup. If Apple can show growth from the four new phones it releases each year without them cannibalizing one another, that gives the company its best chance to see iPhone sales grow meaningfully for the first time since 2022.

The company doesn’t give sales figures for its individual products, and overall iPhone sales for fiscal 2024 came in at $201.18 billion. That’s relatively flat going back to 2022. 

Unfortunately for Jobs’ company, not all of the iPhones are equally popular. 

Every year since 2020, one of the new iPhone models has lagged its siblings in sales. This year it’s the iPhone 16 Plus, which lands in the middle of the lineup. At $899 in the U.S., it’s more expensive than the baseline iPhone 16 but cheaper than the iPhone 16 Pro and Pro Max, which have better screens.

DSCC, a research firm focused on the smartphone display industry with estimates derived from the panel supply chain, has picked up on this trend. The shares of the Pro and Pro Max phones have been rising on an annual basis while the Plus model declined from about 21% of total Apple screen orders in 2022 to 10% in 2023, according to DSCC’s data for annual panel procurement through October. While it recovered somewhat to 16% this year, it’s still the lowest volume out of the company’s new iPhones, according to DSCC.

“They’re still really struggling with this fourth model,” DSCC founder Ross Young said.

Other data shows the Plus lagging, too. The iPhone 16 Plus accounted for 4% of overall iPhone sales in the U.S. in the third quarter while both the Pro and Pro Max each accounted for 6% of sales, according to survey findings by Consumer Intelligence Research Partners. The regular 16 accounted for 4%, too, although early cycle iPhone sales are heavily weighted toward early adopters and the Pro models, according to CIRP.

The metric only includes a few weeks of the latest model sales in the third quarter, but the 2024 findings are in line with last year’s, where the 15 Plus accounted for 3% of total sales about a month after launch.

Apple’s iPhone 15, iPhone 15 Pro and iPhone 15 Pro Max took the top three spots, respectively, in Counterpoint’s data for the best-selling individual smartphone models around the world in the third quarter of 2024. The Plus model didn’t make the top 10 list.

The Mini and Plus failures

Apple’s Series 16 iPhones are seen on display at the Apple Store, Regent Street on September 20, 2024 in London, England. 

Peter Nicholls | Getty Images News | Getty Images

When the iPhone was introduced in 2007 there was one new model per year. The lineup has expanded quite a bit since then, while Apple keeps older models on store shelves as budget options.

In 2014, Apple introduced the iPhone 6 Plus, the first time iPhone came in two sizes, which led to three straight quarters of growth of over 27% in 2015. After Apple released the iPhone X in 2017, raising the price of the highest-end phone and creating a three-model lineup, the company saw three straight quarters of growth of more than 15%.

After Apple moved to a four-phone lineup in 2020, growth surged, hitting 54% in one quarter, although that was partially boosted by the pandemic. But since then, iPhone sales have been basically flat.

When the company introduced the iPhone Mini in 2020, it was the lowest-cost new iPhone at the time, at $699. 

Apple kept the same strategy in place in 2021, hoping that the vocal minority of consumers that had previously demanded smaller phones would flock to the device. It didn’t work, and Apple no longer sells a device with a 5.4-inch screen.

By 2022, Apple shifted its approach and introduced the iPhone 14 Plus, which had the same chip and features as the company’s entry level iPhone 14 but a larger screen. That mirrored Apple’s successful strategy from 2014. Apple boosted its panel procurement for the iPhone 14 Plus up to 21% of the total screens it ordered that cycle, according to DSCC.

But the Plus strategy didn’t work as well as it had before. 

Is Air next?

The new iPhone 16 Pro model is available at an Apple store in Bangkok, Thailand, on September 20, 2024. Apple now makes available to consumers its new lineup of iPhone 16 models, which are the iPhone 16, Plus, Pro, and Pro Max. 

Anusak Laowilas | Nurphoto | Getty Images

Looking ahead, Apple is keeping its four iPhones strategy in place, but it may change the approach it takes to finding a successful fourth model for its 2025 lineup.

Instead of a fourth Mini model at the low end of the lineup or a Plus in the middle, Apple may introduce an Air model at the top of the lineup. An Air offering could be distinguished by a lighter-weight device and a higher starting price, according to an August report by Bloomberg News.

Despite giving it a higher price tag, Apple may have to make a trade-off on the Air device by limiting it to one camera, due to the lighter weight and a slimmer design. Apple’s current high-end phones, the Pro and Pro Max, have three big cameras that add photographic capabilities but also add weight. DSCC’s Young said he expects the screen size of the Air to come in at 6.55 inches, between this year’s Pro and Pro Max sizes.

A new high-end phone could make sense for Apple. In recent years, the Max models have outperformed the lower-end models in sales, suggesting there is stronger demand for more powerful and feature-packed phones at the top of Apple’s lineup than there is for lower-cost models.

In October, Apple signaled that the company had enough stock of the iPhone 16 and iPhone 16 Plus to meet demand but that the more expensive Pro and Pro Max were still in short supply.

Outside the U.S., Apple’s more expensive models have shown more growth in recent years. In the first three weeks of iPhone 16 sales in China, the 16 Pro and Pro Max models were up 44% compared with last year’s high-end models.

Model preferences also vary across regions, Counterpoint analyst Varun Mishra told CNBC.

“In China, the Pro series is performing well, as consumers there tend to favour the Pro models,” Mishra said in an email. “In India, the Pro series is strong, partly due to a lower launch price compared to last year, thanks to local manufacturing.”

Apple has previously released thinner, lighter models of its existing products in order to raise prices and push the limits of its engineering. In 2008, Apple introduced the MacBook Air, which it marketed by saying that it was thin enough to fit in an envelope. At first, it was more expensive than Apple’s other Macs, starting at $1,799, but over the years, MacBook Air has become Apple’s entry-level laptop.

In 2013, the company did the same thing with its iPad, introducing an iPad Air, with a thinner design, although it was Apple’s flagship new iPad model released that year. Apple now uses the iPad Air as the middle option in its iPad lineup.

For Apple, a shift from Plus to Air could mean more iPhone sales, especially if the new model is priced higher than the other iPhones, which could help Apple expand its margin and continue the recent trend of a higher average iPhone selling price. It could also help focus Apple’s early adopters and fans on one single high-end iPhone model.

“Next year they’re going to try something different,” Young said.

WATCH: The iPhone 16 upgrade can be a multiyear cycle, says BofA’s Wamsi Mohan

The iPhone 16 upgrade can be a multi-year cycle, says BofA’s Wamsi Mohan

Continue Reading

Technology

23andMe bankruptcy under congressional investigation for customer data

Published

on

By

23andMe bankruptcy under congressional investigation for customer data

Signage at 23andMe headquarters in Sunnyvale, California, U.S., on Wednesday, Jan. 27, 2021.

David Paul Morris | Bloomberg | Getty Images

The House Committee on Energy and Commerce is investigating 23andMe‘s decision to file for Chapter 11 bankruptcy protection and has expressed concern that its sensitive genetic data is “at risk of being compromised,” CNBC has learned.

Rep. Brett Guthrie, R-Ky., Rep. Gus Bilirakis, R-Fla., and Rep. Gary Palmer, R.-Ala., sent a letter to 23andMe’s interim CEO Joe Selsavage on Thursday requesting answers to a series of questions about its data and privacy practices by May 1.

The congressmen are the latest government officials to raise concerns about 23andMe’s commitment to data security, as the House Committee on Oversight and Government Reform and the Federal Trade Commission have sent the company similar letters in recent weeks.

23andMe exploded into the mainstream with its at-home DNA testing kits that gave customers insight into their family histories and genetic profiles. The company was once valued at a peak of $6 billion, but has since struggled to generate recurring revenue and establish a lucrative research and therapeutics businesses.

After filing for bankruptcy in in Missouri federal court in March, 23andMe’s assets, including its vast genetic database, are up for sale.

“With the lack of a federal comprehensive data privacy and security law, we write to express our great concern about the safety of Americans’ most sensitive personal information,” Guthrie, Bilirakis and Palmer wrote in the letter.

23andMe did not immediately respond to CNBC’s request for comment.

More CNBC health coverage

23andMe has been inundated with privacy concerns in recent years after hackers accessed the information of nearly 7 million customers in 2023. 

DNA data is particularly sensitive because each person’s sequence is unique, meaning it can never be fully anonymized, according to the National Human Genome Research Institute. If genetic data falls into the hands of bad actors, it could be used to facilitate identity theft, insurance fraud and other crimes.

The House Committee on Energy and Commerce has jurisdiction over issues involving data privacy. Guthrie serves as the chairman of the committee, Palmer serves as the chairman of the Subcommittee on Oversight and Investigations and Bilirakis serves as the chairman of the Subcommittee on Commerce, Manufacturing and Trade.

The congressmen said that while Americans’ health information is protected under legislation like the Health Insurance Portability and Accountability Act, or HIPAA, direct-to-consumer companies like 23andMe are typically not covered under that law. They said they feel “great concern” about the safety of the company’s customer data, especially given the uncertainty around the sale process.

23andMe has repeatedly said it will not change how it manages or protects consumer data throughout the transaction. Similarly, in a March release, the company said all potential buyers must agree to comply with its privacy policy and applicable law. 

“To constitute a qualified bid, potential buyers must, among other requirements, agree to comply with 23andMe’s consumer privacy policy and all applicable laws with respect to the treatment of customer data,” 23andMe said in the release.

23andMe customers can still delete their account and accompanying data through the company’s website. But Guthrie, Bilirakis and Palmer said there are reports that some users have had trouble doing so.

“Regardless of whether the company changes ownership, we want to ensure that customer access and deletion requests are being honored by 23andMe,” the congressmen wrote.

WATCH: The rise and fall of 23andMe

The rise and fall of 23andMe

Continue Reading

Technology

TSMC denies it’s talking to Intel about chipmaking joint venture

Published

on

By

TSMC denies it's talking to Intel about chipmaking joint venture

A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.

Daniel Ceng | Anadolu | Getty Images

Taiwan Semiconductor Manufacturing Company denied reports that the semiconductor giant was in active discussions with Intel regarding a chipmaking joint venture.

“TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology,” CEO C.C. Wei said on the company’s first-quarter earnings call on Wednesday, dispelling rumors about a collaboration with Intel.

Intel and TSMC were said to have been looking to form a JV as recently as this month. On April 3, The Information reported that the two firms discussed a preliminary agreement to form a tie-up to operate Intel’s chip factories with TSMC owning a 21% stake.

Intel was not immediately available for comment when contacted by CNBC on Wei’s comments on Thursday. The company previously said it doesn’t comment on rumors, when asked by CNBC about the reported discussions.

Once the dominant chipmaker in the U.S., Intel has faced numerous challenges in recent years, losing ground to players like Nvidia, AMD, Qualcomm and Apple. Last year, Intel suffered its worst ever performance as a public company, with shares shedding 61% of their value.

TSMC’s denial of tie-up talks with Intel comes as President Donald Trump is pushing to address global trade imbalances and reshore manufacturing in the U.S. through tariffs. The Department of Commerce recently kicked off an investigation into semiconductor imports — a move that could result in new tariffs for the chip industry.

TSMC reported a profit beat for the first quarter thanks to a continued surge in demand for AI chips. However, the company contends with potential headwinds from Trump’s tariffs — which target Taiwan — and stricter export controls on TSMC clients Nvidia and AMD.

– CNBC’s Dylan Butts contributed to this report

Continue Reading

Technology

TSMC first-quarter profit tops estimates, rising 60%, but Trump trade policy threatens growth

Published

on

By

TSMC first-quarter profit tops estimates, rising 60%, but Trump trade policy threatens growth

A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.

Daniel Ceng | Anadolu | Getty Images

Taiwan Semiconductor Manufacturing Company on Thursday beat profit expectations for the first quarter, thanks to a continued surge in demand for AI chips.

Here are TSMC’s first-quarter results versus LSEG consensus estimates:

  • Revenue: $839.25 billion New Taiwan dollars, vs. NT$835.13 billion expected
  • Net income: NT$361.56 billion, vs. NT$354.14 billion 

TSMC’s reported net income increased 60.3% from a year ago to NT$361.56 billion, while net revenue in the March quarter rose 41.6% from a year earlier to NT$839.25 billion.

The world’s largest contract chip manufacturer has benefited from the AI boom as it produces advanced processors for clients such American chip designer Nvidia.

However, the company faces headwinds from the trade policy of U.S. President Donald Trump, who has placed broad trade tariffs on Taiwan and stricter export controls on TSMC clients Nvidia and AMD.

Semiconductor export controls could also be expanded next month under the “AI diffusion rules” first proposed by the Biden administration, further restricting the sales of chipmakers that use TSMC foundries.

Taiwan currently faces a blanket 10% tariff from the Trump administration and that could rise to 32% after the President’s 90-day pause of his “reciprocal tariffs” ends unless it reaches a deal with the U.S.

As part of efforts to diversify its supply chains, TSMC has been investing billions in overseas facilities, though the lion’s share of its manufacturing remains in Taiwan.

In an apparent response to Trump’s trade policy, TSMC last month announced plans to invest an additional $100 billion in the U.S. on top of the $65 billion it has committed to three plants in the U.S.

On Monday, AMD said it would soon manufacture processor chips at one of the new Arizona-based TSMC facilities, marking the first time that its chips will be manufactured in the U.S.

The same day, Nvidia announced that it has already started production of its Blackwell chips at TSMC’s Arizona plants. It plans to produce up to half a trillion dollars of AI infrastructure in the U.S. over the next four years through partners, including TSMC.

Taiwan-listed shares of TSMC were down about 0.4%. Shares have lost about 20% so far this year.

Continue Reading

Trending