Reliable Apple Analyst Ming-Chi Kuo Returns, As He Reveals New Pricing Strategy Of 2018 iPhones

TF International Securities' analyst Ming-Chi Kuo, who formerly works for KGI, has released new research note, which claims that Apple’s pricing strategy will be "more aggressive" for the three iPhones that will be launched in September 2018...




According to Kuo, the use of more aggressive pricing strategy is due to the "concern over the negative impact of a higher price" for its 2018 iPhones", improved cost structure - yield improvements and cost reduction of the components, as well as a way to promote users' interest in Face ID.

We forecast that Apple will adopt a more aggressive price policy for the following reasons: (1) concern over the negative impact of a higher price in a mature smartphone market on selling momentum, (2) improved cost structure, which is mainly attributed to assembly yield improvements of end product & 3D sensing and cost reduction of components, and (3) increasing users of Face ID benefiting the promotion of the Apple service and ecosystem.

Furthermore. Kuo believes that the cost of 6.5-inch OLED "iPhone X Plus" will be $900-$1,000, the iPhone X 2 will be $800-$900, and the new 6.1-inch LCD iPhone will be $600-$700. These iPhones will be announced and launched in September, says the reliable analyst.

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