Yes, leaks saying it might not have Touch ID because they couldn't make it work, not because they wanted to replace it.
From the very article you linked:
As I've been saying, the chatter before release was that Apple wanted Touch ID under the screen and couldn't make it work, NOT that they always intended to replace Touch ID with Face ID. And the link you posted supports that point entirely.
heh.. like i said.. i was on a phone and searching for the past articles isn't so good that way
but yeah, you have to go further back than the one i linked to.. dec/January 2017
it's at that time, the rumors were about under screen touchID being fully replaced by faceID.. or, a combo of the two IF Apple couldn't get faceID secure enough in time..
like, the way the reports were written was opposite of what you're saying.. that faceID was the problem needing figuring out.. not under screen touchID..
https://www.macrumors.com/2017/01/21/apple-touch-id-facial-recognition-iphone-8/
Notably, Kuo believes the fingerprint recognition system will "ultimately be replaced by a facial recognition system" for enhanced security. "However, if the technical challenges cannot be overcome, we believe a combination of fingerprint and facial recognition is another possible solution."
Judging by the bio-recognition patents that Apple has applied for, we believe it is leaning toward facial recognition technology rather than iris recognition. However, we note that the technical challenges of facial recognition include: (1) algorithms; (2) hardware design; and (3) the build-out of a database for verification and authentication, which could be time consuming. As such, before Apple can fully replace the fingerprint system with facial recognition, a combination of the two steps of bio-recognition could be a valid solution for enhancing transactions security.
a couple of other around this same time (iirc, there are more similar reports earlier than these as well)
https://www.macrumors.com/2017/01/18/iphone-8-facial-gesture-recognition/
https://www.macrumors.com/2017/02/16/iphone-3d-laser-scanner-facial-recognition/
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here's the thing... shortly after those reports (or possibly before?), Apple placed the order to Samsung for the X's OLED panels.. (like 80million or so)..
at that point, it was a done deal.. touchID under the display would need a different display than the ones which are going into iPhone X.. and Apple just ordered a crapton of displays which can't be used with touchID
all of the rumors/reports after this order was placed-- the ones about 'Apple is still struggling with touchID' etc.. well, we know now that they didn't matter.. Apple wasn't still trying to get touchID under the screen for the X.. the design was already finalized prior.. the non-touchID X was already being built.
idk, i wouldn't be surprised if this decision were made a year ago.. and i would also bet money that Apple knows how to put touchID under the display.. it really does seems as if once Apple tuned faceID to be secure enough for financial transactions (ApplePay/banking/etc), touchID was no longer on the plate as far as their next gen phone is concerned.