Apple falls on iPhone 14 worries, Wedbush's Ives says iPhone Pro model is 'key' focus
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Apple (NASDAQ:AAPL) shares fell 4% in premarket trading on Wednesday after a media report indicated the tech giant was pulling back from its plans to boost iPhone production due to a lack of demand for its overall product line. However, Wedbush Securities analyst Dan Ives said the "key" for Wall Street was the iPhone 14 Pro model. 
Ives, who has an outperform rating and a $220 price target on Apple (AAPL), tweeted that the iPhone 14 Pro mix is likely accounting for 85% of overall iPhone 14 production, compared to 65% for the iPhone 13 line.
The analyst added that the report of a production cut due to softer demand will "send nervousness [into the] market," but the Pro model is the "key" focus for Wall Street.
In an investor note, Ives added that the report "overshadows the underlying demand" for iPhone 14 Pro units.
"This means much higher ASPs and a clear tailwind for Apple into [fiscal 2023] at this pace," Ives wrote, adding that wait times have extended into early November for some iPhone 14 Pro units and Apple is simply shifting production from the iPhone 14 to higher-end models, which will boost the average selling price and be a "clear tailwind" for Apple going into next year. 
The overnight report comes shortly after several investment analysts highlighted continued strong demand for the iPhone 14.
On Monday, J.P. Morgan analyst Samik Chatterjee cited the Wave7 August survey of U.S. sales trends pointed to a slipping of iPhone 13 market share by roughly 500 basis points in anticipation of the iPhone 14 launch this month. The survey added that the new product line is expected to fare better than iPhone 13, citing sources at a national retailer.
TF International Securities analyst Ming-Chi Kuo also recently pointed out that Apple (AAPL) has asked Foxconn (OTCPK:FXCOF) to switch production lines of the iPhone 14 and iPhone 14 Pro models in order to build more iPhone 14 Pro units.
Last week, investment firm Bank of America said Apple (AAPL) was likely benefiting thanks to "attractive" promotions from U.S. telecoms, which are incentivizing people to upgrade to the newly released iPhone 14 line.
Earlier this week, Cupertino, California-based Apple (AAPL) confirmed that it would produce some iPhone 14 units in India.