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2018 iPhones Could Start at $699, May Include Apple Pencil Support, 512GB Storage Option for OLED Models

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Apple may introduce its upcoming 6.1-inch LCD iPhone with a starting price of around $699 to $749, according to industry analysis by TrendForce. The pricing strategy is said to be partly a response to lower than expected iPhone sales last year, and partly a result of competition from Chinese brands that have expanded their market shares with devices that offer high performance at affordable prices.

Three new iPhone models are expected to form Apple's 2018 lineup: two OLED models measuring in at 5.8 and 6.5 inches, and a 6.1-inch lower-cost LCD model. All three models will feature Face ID in lieu of a Home button, but TrendForce predicts the "budget" LCD device will be Apple's main device in terms of production share.

Image via TrendForce
The specs upgrades would make new iPhones more favorable in the competition with Android phones. On the other hand, the cost of this model has been approaching that of iPhone 8 Plus due to the upgrades. However, the 6.1-inch LCD model would be positioned by Apple's main product this year, with a production share of around 50% in the new iPhone series. Apple is bound to adjust the prices of this model to meet the market expectation and to further expand its market share. Considering the cost reduction of components, TrendForce estimates the starting price of this LCD version at around $699-749.
As for the new OLED models, TrendForce expects the 5.8-inch device will have a lower starting price of $899 to $949, while the current-generation iPhone X, which starts at $999, will enter its "end of life" process due to the similarity in the specs of the two models. Meanwhile, the upcoming 6.5-inch device will target the "premium business segment" with a starting price of $999.

TrendForce believes Apple could introduce a 512GB storage option for the OLED models. In addition, Apple Pencil support may feature with the new iPhones, although it's unclear whether this also relates to just the OLED models. Respected analyst Ming-Chi Kuo has previously suggested that Apple Pencil support for a future iPhone is a possibility, although he doesn't believe iPhones will support Apple Pencil until 2019 at the earliest.

Apple is said to have been bargaining with its supply chain partners to reduce the cost of components, especially those which have been used in earlier generations of iPhone. That view tallies with earlier reports claiming Apple wants Samsung to reduce the price of its OLED display panels so it can cut the cost of current and future iPhone X models.

Price cuts to the display and other components would help Apple lower its bill of materials for the new models, with the savings potentially passed on to customers. For example, in line with TrendForce's prediction, RBC Capital Markets analyst Amit Daryanani believes the second-generation iPhone X will start at $899, down from $999.

TrendForce expects the production volume of the three new iPhones to be around 83-88 million units, potentially taking a larger share of the company's annual sales volume compared with the three models it released last year. Sales volume of iPhones in 2018 meanwhile is expected to remain flat or grow marginally by 2 to 3 percent, owing to the saturated smartphone market and the longer replacement cycle of phones globally.

TrendForce believes the two OLED models have been assembled by manufacturers since late July, while the assembly of the LCD models is scheduled for mid-September. Apple is expected to launch the trio of new iPhones in September.

Article Link: 2018 iPhones Could Start at $699, May Include Apple Pencil Support, 512GB Storage Option for OLED Models
 

kiranmk2

macrumors 6502a
Oct 4, 2008
917
457
Surprised Apple couldn't force the proposed price of the X2 lower given that FaceID module manufacturing must be optimised by now and Samsung had a well-documented oversupply of OLED panels this year (hence the value of them decreases). Of course, this could simply be Apple squeezing a bit more margin out of the phones...
 

flyinmac

macrumors 68040
Sep 2, 2006
3,576
2,453
United States
Hmmm.... competitors increased market share by offering higher performance, features, and a lower price, while Apple’s sales were lower than expected.

Really???

Who could’ve seen that coming??? Oh, yeah... everyone outside Apple headquarters.

The question is... how much money did they have to pay for that market analysis?
 

1098474

Suspended
Oct 6, 2017
74
49
Hmmm.... competitors increased market share by offering higher performance, features, and a lower price, while Apple’s sales were lower than expected.

Really???

Who could’ve seen that coming??? Oh, yeah... everyone outside Apple headquarters.

The question is... how much money did they have to pay for that market analysis?
Well said sir
 
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rembert

macrumors member
Feb 10, 2009
77
119
Amsterdam area, Netherlands
So, no more 4” phones like the SE? Or will it be the ‘one more thing’-surprise?
I’ve seen too many people switching back from larger iPhones to just the SE.
I myself am happy with the 4” size, never even considered to moving to a larger phone. Yes, I’ve checked them out. They look gorgeous but the increased size doesn’t work with me even though I need to use my reading glasses.
 

Frantisekj

macrumors regular
Mar 9, 2017
231
131
Deep inside Europe :-)
Question is what processor LCD model will have. Whethetr A12 then whether will have same frequencies and what other differencies there can be other then LCD and single camera?
 

oddiecz

macrumors member
Jul 7, 2010
61
39
Is it just me or does it seem like this is the most unexciting release to date. I'm more interested in the iPad and Apple Watch. Another year, another iPhone. Bleh...

im excited because im still using my iphone 6s. I will upgrade this year for sure regardless of what releases

Put a really decent camera in the iPhone X and add two hours of battery life and you have the best release in the last five years. Add split window multitasking to the X Plus and meaningfully push the iPhone forward as a productivity machine. Might happen. I'm not saying it will, I refuse to be bored until the keynote bores me :)
 
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EB-V10

macrumors newbie
Jan 23, 2017
9
0
Really wish the 6.06" unit had a OLED display. Been wanting something with a slightly bigger screen for a while but find the Plus models to be a bit too big.
 

Relentless Power

macrumors Nehalem
Jul 12, 2016
34,429
35,559
Is it just me or does it seem like this is the most unexciting release to date. I'm more interested in the iPad and Apple Watch. Another year, another iPhone. Bleh...

It’s just you. I always enjoy the September keynotes regardless, being that we don’t know exactly what to expect, other than its Apples annual iPhone event. But three new iPhones to me seems fairly promising and opens up to an expanded demographic for those who might want the more affrobale 6.1 LCD iPhone (Which is the wildcard currently) or the larger 6.5 iPhone X, and of course the 5.8 X.

I Can tell you what would make it more exciting though, A refreshed iPhone SE *if* that were to launch.
 

Val-kyrie

macrumors 68020
Feb 13, 2005
2,042
1,315
According to TrendForce, Apple has been bargaining with its supply chain partners to reduce the cost of components, especially those which have been used in earlier generations of iPhone. That view tallies with earlier reports claiming Apple wants Samsung to reduce the price of its OLED display panels so it can cut the cost of current and future iPhone X models.

LOL. This has more to do with increasing profit margins so Apple doesn't have to increase the ASP (Average Selling Price) of its iPhones in order to generate more profits for shareholders.
 
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