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KGI: Apple to Discontinue iPhone X Rather Than Sell at Lower Price When Second-Generation Model Launches

cycomiko said:
imessage is buggy, sometimes messages arrive, sometimes they don't. Then I still have to have all of the apps you are commenting about (and then some more on top of that) because most of the world doesn't use apple. Most iphone users also dont have a mac, so thats not much of a selling point either.
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Nothing is impervious to bugs. Most of the world uses Android since it is the most ubiquitous OS out there. Open source, more affordable, highly customizable, etc. Most people use PC, that is true. But the features still exist and are a huge selling point to those in the ecosystem.
 
The Game 161 said:
There isn't any spin.

It's pretty easy to see why they are doing this and it's not down to sales. It's down to refusing to lower the price of a year old iphone X
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I think it has a whole lot to do with the fear that a year old phone would outsell the new 2018 models. That is exactly what has happened this past quarter with the 6S and the 7 selling many more units than the 8 and the X. There isn't that great a leap in technology between generations any more and a year-old model will likely perform perfectly adequately for two or three years before being replaced. Real-world performance has leveled off and customers are choosing between a $550 iPhone 7, a $700 iPhone 8, or a $1,000 iPhone X. The price/performance curve favors the 7 for many customers who look at overall value.

A discounted X doesn't fit in with Apple's long-term plans. The 6.1" LCD phone in the $700 range is what they are going to push as a cheaper alternative to the X. A discounted 2017 X would likely cannibalize sales of the 2018 model without providing an overall increase in unit sales.
 
lfhlaw said:
I look at it more like cars. You have the high end luxury cars like Lexus,Acura, or Infinity and made by the same companies that make Toyota, Hodna, and Nissan, respectively. Not everyone buys them because...well....price and you don't have to have that High end brand. But you buy the next best thing maybe...a Toyota or Nissan. So That's what Apple did IMO.

Do Car Manufacturers stop making The top of the line car because they sell less? Nope. They sell less, but they still make a profit. Generally they don't make as many of those cars as well.
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Iphones costs the same as an Apple Macbook Air now. That's like saying Honda is pricing their Accord the same as their CRV.
 
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dontwalkhand said:
Handful? Try the official name.
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Apple did not market it hard enough for it to be known as the ten. Even the Salesforce at AT&T called it the ex when I was in the store. Yes, it is the official name, but not what it is called. How do you pronounce Sade?
 
Did they discontinue the Apple Watch 0 when the 1 came out. This is brilliant, they get to use the X customers as beta. But cancel the phone which they marketed as beta ( the future). This since they were honest that it was beta, the early adopters will not complain , aLthough some might silently feel suckered.
 
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partydorm said:
Feel sorry for those who're voluntary paid $1,000+ to be a guinea pig.
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Actually after the new iPhone X comes out next year, there won't be a cheaper version of the iPhone X for $800, which means those with iPhone X will be able to sell it for a lot less of a loss.

If the iPhone X were to be offered at a $200 lower price point, like previous iPhones have done, then used iPhone X wouldn't be able to be sold used for as much. But now they will be able to sell their iPhone X for a loss of only about $200- $300. After a year of use. Not bad
 
MacRumors said:
Here's how Apple's new iPhone lineup could look:

  • iPhone SE: $349
  • iPhone 7 and iPhone 7 Plus: $449 and $569
  • iPhone 8 and iPhone 8 Plus: $549 and $669
  • 6.1-inch iPhone with Face ID: $649 or $749
  • 5.8-inch second-generation iPhone X: $999
  • 6.5-inch second-generation iPhone X Plus: $1,099
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The 5.5” iPhone 8 Plus without FaceID is $799; I don’t see why the new 6.1” iPhone 9 Plus with FaceID would come in at $749 let alone $649. $649/$749 are just those prices Kuo invented a few months ago, and aren’t anything Kuo’s supply chain sources could possibly be of any help with. I think $799 is much more likely.

With the 6.1” at $799, the price range probably is too compressed to have the 2017 X still in the lineup; what would it be, $849? The 2018 X (I’ll call it X.2) could well be at $899 to $949 as Apple reduces the premium for X features that are being mainstreamed and pushed downmarket, sooner rather than later (i.e., OLED and FaceID/TrueDepth). I could see the 2018 X.2 Plus at 1,049 or 1,099 (then with 4GB RAM?)

Just because they’re discontinuing the 2017 X doesn’t mean there will be any significant change in the X.2—in fact the change could be as small as A11—>A12, and would imply a discontinuing of the current X. After all, why continue to sell it another year if there’s no appreciable difference from the newer X.2?

It’s also possible Apple continues to sell the A9/2GB platform iPhones (6S/6S Plus/SE) this fall instead of discontinuing them (maybe only in the most price-sensitive countries). No, keeping older, less costly (BOM), fully R&D-amortized products in the lineup isn’t confusing to the consumer or somehow fragmenting.

(Nor is it reminiscent of the mid-late 90s Apple, with its dozens and dozens of overlapping/non-differentiated/market segregated Mac/Performa SKU-tastrophe—with its seemingly endless, nearly-identical array of configs that not even Apple could keep straight. So with that prebuttal, please save the poorly thought out analogy.)

Anyway, with these thoughts in mind I’d re-cast the article’s potential fall lineup as follows:

  • Possibly the current SE: $299
  • Possibly the 6S and 6S Plus: $399 and $479
  • iPhone SE2(50/50 odds of refresh?): $349
  • iPhone 7 and iPhone 7 Plus: $449 and $569
  • iPhone 8 and iPhone 8 Plus: $549 and $669 $599 and $699
  • 6.1-inch iPhone 9 Plus with Face ID: $649 or $749 $799
  • 5.8-inch second-generation iPhone X: $999 $899 possibly or $949
  • 6.5-inch second-generation iPhone X Plus: $1,049 or $1,099
 
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78Bandit said:
A discounted X doesn't fit in with Apple's long-term plans. The 6.1" LCD phone in the $700 range is what they are going to push as a cheaper alternative to the X. A discounted 2017 X would likely cannibalize sales of the 2018 model without providing an overall increase in unit sales.
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A discounted 2017 X would cannibalize the overall supply of OLED panels. That is what this entire decision is based on. Well, that and keeping profit margins high by selling a lot of $700 LCD models and a lot of full price 2018 X’s.
 
78Bandit said:
I think it has a whole lot to do with the fear that a year old phone would outsell the new 2018 models. That is exactly what has happened this past quarter with the 6S and the 7 selling many more units than the 8 and the X. There isn't that great a leap in technology between generations any more and a year-old model will likely perform perfectly adequately for two or three years before being replaced. Real-world performance has leveled off and customers are choosing between a $550 iPhone 7, a $700 iPhone 8, or a $1,000 iPhone X. The price/performance curve favors the 7 for many customers who look at overall value.

A discounted X doesn't fit in with Apple's long-term plans. The 6.1" LCD phone in the $700 range is what they are going to push as a cheaper alternative to the X. A discounted 2017 X would likely cannibalize sales of the 2018 model without providing an overall increase in unit sales.
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The 6S and 7 did not sell many more units than 8 and the X, not even close.

I’d be surprised if the 8/8 Plus/X didn’t grab 2/3 or even 3/4 of all sales; ASP will be instructive.
 
conifer said:
Did they discontinue the Apple Watch 0 when the 1 came out. This is brilliant, they get to use the X customers as beta. But cancel the phone which they marketed as beta ( the future). This since they were honest that it was beta, the early adopters will not complain , aLthough some might silently feel suckered.
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They did discountinue the Series 2 Watch when the 3 came out and kept the Series 0 also.

I don’t feel suckered at all I always figured they may discontinue iPhone X when this year models come out anyway I get a new one every year thru my carrier financing so either way I really don’t care. Next!
 
BootsWalking said:
The iPhone X and it's notch will become a collectors item, like the Ford Pinto and its gas tank.
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why do you think there won't be a notch on the second generation iphone-X?
[doublepost=1516683685][/doublepost]So, Will "6.1-inch iPhone with Face ID: $649 or $749" be bezel-less or not? If yes, why isn't that labelled as a 6.1 inch 2nd gen iPhone X? If no, will they have the touch-id on the home button AND face-id? Or remove the touch-id despite having the face-id? I don't see the logic of a phone with bezels going forward at all. Afterall, if they can price a phone with Face-id at 649, there is no way to justify a 350 $ more for removing the bezels.
 
teknikal90 said:
basically the iphone x was supposed to come out in 2018 but the galaxy s8 came out and surprised them so they couldnt just do an iphone 7s (which ended up being the 8)

so they rushed the iphone x, with the faceID but with iphone 8 internals, plus other premium build materials (stainless steel) to justify the higher price.

now, the 'second generation' iphone x will come in 2018 as originally planned. will probably come with more features but a build quality more akin to the iphone 7 and iphone 8.... possibly lower pricing too.
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Say what? They will not be doing any design changes back to the iPhone 7 or iPhone 8 and I see folks are still skittish about the price well sad news because the price isn’t being lowered either.

This is Apple and they don’t cut margins and lower prices. All talk of cheaper prices and older design is going to be debunked in September!
 
I don't love my iPhone X.

Face ID is brilliant, but I don't like the large size and weight and the awkwardness of the gesture interface compared to the home button. It makes task switching and settings access slower and more awkward. Actually thinking of selling it and getting an iPhone 8 instead (although I WILL miss face ID!)
 
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apolloa said:
Samsung offered the S8 at launch at just over half the cost of the X.... retail price! And it has the same features.
[doublepost=1516657678][/doublepost]

They do have the same features, the only one lying is you to yourself if you can’t realise that :rolleyes:
I bet the S9 adds dual lens camera and stereo speakers. And still cost the same.
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1. Again, no, they don't have the same features, although there are quite a number they hold in common.

2. I like how you didn't address the fact you claimed that new Galaxy phones start at $499 when I called you out on it. How pathetically disingenuous of you.

3. "I bet the S9 adds dual lens camera." But wait... why would they have to add a dual lens camera (like the X) if they already have the same features?
 
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virbing said:
Yes, because who needs a phone that actually sounds good when you talk to someone. If you are happy with your callers hearing a muffled voice, I assume you really aren't in the market for a $1000 PHONE.
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Wow, why so serious? What about "i know, i didn't think about that", "not in a satisfying way" and the smiley at the end, gave you the intention i would be ok with it?

And yes, I'm clearly not in the market for a 1000$ device that doesn't benefit my life in any way. I would be stupid, wouldn't I?
Especially if I can do so much better with other smartphones. I'm heavily (and happily) "caught" in the apple world, but couldn't stand ios any longer, so i switched last fall...

No need to be so offensive about the precious iPhone.

Ps: actually, i just wanted to invoke a thought how this could be actually manageable, to hide the speaker or place it another way. I'm sure it's doable, maybe you have an idea? Or just wait till other manufacturers figure it out.

Edit: also, the caller wouldn't hear a muffled voice, I would... I was talking about the speaker. Microphones on the side, the bottom or in the bezle are a reality since years.
 
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Sales must be really bad when the five year old design X'd out the X.

Here's how to get sales back on track.

- fix the price
- get rid of the ugly notch
- bring back Touch ID to complement the less secure and less convenient Face ID
- equip with a bigger higher quality battery
- add at least one noteworthy feature (emoji doesn't count while others have been done by others)
- promise not to throttle via iOS
 
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himanshumodi said:
why do you think there won't be a notch on the second generation iphone-X?
[doublepost=1516683685][/doublepost]So, Will "6.1-inch iPhone with Face ID: $649 or $749" be bezel-less or not? If yes, why isn't that labelled as a 6.1 inch 2nd gen iPhone X? If no, will they have the touch-id on the home button AND face-id? Or remove the touch-id despite having the face-id? I don't see the logic of a phone with bezels going forward at all. Afterall, if they can price a phone with Face-id at 649, there is no way to justify a 350 $ more for removing the bezels.
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I don’t think the rumored 6.1” LCD model will have as small bezels as those on the X. It’s physical size may be close to the new 2018 X Plus model but with a smaller screen.

Also, it’s not OLED. I’m sure the camera won’t be as good as the 2018 X/X Plus models, as well.

But the pricing is out of whack, I agree. Personally I think the 6.1” (iPhone 9 Plus?) will be priced at $799, why would Apple drop the pricing to $649-$749? By comparison, the 8 Plus is $799, with a 5.5” display and no FaceID.
 
Well they kinda already have the iPhone 8 that they tried with this pricing with. It failed.

I hope they don't do this, instead just aim for the iPhone 8 price point because the $1000 phone really does seem to be peoples' spending limit. That price and small size has slashed apples potential sales with the X. I'd prefer they remove some features like the stack for force touch, put the finger print sensor under the screen because of that and reduce the notch to a single camera, everything else can squeeze outside the screen. Costs would be similar to current iPhone 8. As much as I love Face ID, it's a terrible compromise to have it take up so much screen, it would have been better to have a bottom notch with a button than this kludge. I really don't get how apple thought this design was the right choice! Even a rear Touch ID would have been superior and cheaper to make.

I don't mind spending money myself but the market for super expensive phones shrunk this year as cheaper models continue to offer 98% of the looks and features. When you can get a $500 phone better than apples' iPhone 8 and the only way to stick with apple is to double your money, something has gone wrong.
 
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