Jan 22, 2018

KGI: Apple Will Discontinue The Current iPhone X Rather Than Dropping The Prices And Keep It Around

According to well-connected Apple analyst Ming-Chi Kuo, Apple to discounting the first-generation iPhone X when the second-generation model launches later this year, rather than bump it down its smartphone lineup at a price lower than $999, he believes Apple will introduce new models at the current prices.


He said that if Apple keeping the current iPhone X in its smartphone lineup for a reduced price, such as $899, will likely to cannibalize sales of the mid-range 6.1-inch iPhone with Face ID and an LCD display that is expected to launch in the fall of 2018 for between $650 and $750 in the United States.

iPhone X would hurt product brand value & lineup of 2H18 new models if it continues to sell at a lower price after 2H18 new models launch:Lowering iPhone Xs price after the 2H18 new models launch would be a negative to product brand value given 3D sensing and OLED display are features of the new high-price model. Additionally, to sell iPhone X at a lower price may have a negative impact on shipments of the new 6.1" LCD iPhone in 2H18. Thus, we estimate iPhone X will reach end-of-life (EOL) around the middle of 2018.

Kuo, on the other hand, said iPhone X has been a "strategic success" for Apple, cementing long-term competitive advantages for the company with Face ID and TrueDepth cameras. In his view, the 3D sensing capabilities in the iPhone X to pave the way for more advanced augmented reality and artificial intelligence applications.

It's widely believed that Apple is expected to expand the iPhone X lineup with a so-called "iPhone X Plus," boasting the size of a larger Plus-sized iPhone model with an edge-to-edge OLED screen. The company could also consist of the second-generation 5.8-inch iPhone X, which will likely remain $999, alongside the mid-range 6.1-inch iPhone.

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