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

[dwsolberg]

I wonder if the iPhone X components are still going to be too expensive for Apple to sell at a lower price (and keep their margins). I know that Tim Cook said that the iPhone X had lower margins than the other iPhones.

Additionally, if Apple improves the sensor housing for the FaceID, they may get more economies of scale if they move everything to the same housing. Also they may be working on decreasing the cost of either the components or the assembly of the sensor housing.

This is the first year since the iPhone was introduced that I haven't upgraded — more because I love my glossy black iPhone 7 than because of any flaws in the X. On the other hand, I often use my phone without a case, and the glass back of the newer phones makes me nervous. I also don't get why it's so expensive to repair a glass back vs. the screen. I'm sure there's a reason, but it also makes me nervous. Without AppleCare, replacing the glass back is very, very expensive. Even with AppleCare, it's $100 for the back vs. $29 for the screen.

 

[Ds6778]

More RAM please. Tired of Apps having to reload when I go back to them. 3GB on a $1K phone is a cheap move.

 

[Rogifan]

Not just rumor sites, this made front page news on Yahoo.

Clickbait. I noticed Apple stock is down today whereas most other tech stocks are up 1-2%.

 

[tridley68]

Bring on the I Phone X 6.5 OLED I am ready to upgrade from my first gen I phone x .

 

[sidewinder3000]

In other news, Honda will discontinue 2017 Civic when 2018 Civic is released.

Bad parallel. Jokes are only funny when the’re based on truth. Name a single car company that has ever continued to manufacture the previous year’s model while their current year’s model was being made and sold?

Can’t? That’s because they [typically] don’t.

If the prediction in the article is true, it indeed would be “news” and a break from precedent if Apple were to stop making their previous year’s model and selling it at a lower price.

 

[TheShadowKnows!]

Do you not know how this works by now? In about May, rumors will fly of some kind of iPhone X Magical Mega with a rumored price of (about) $1499... followed by another rumor also suggesting $1499... and then maybe one or two more in the weeks leading up to the big reveal. The rumors get us through the "I will never pay that much" outrage without actually costing Apple any sales, shifting us into nearly acceptance except maybe still clinging to the idea that we won't pay that much for a phone. Nevertheless, one of our kidneys is probably listed on CL just in case we can't bare to NOT pay whatever the mothership asks for a new phone.

Then Apple takes the stage, reveals the new "it" with a few new features not available on prior phones, some software gee-whiz, maybe some kind of gimmicky feature only the kiddies will love too. Everyone will expect the $1499 price because the rumors have us pretty much there. Then Apple reveals "only $1200" to a big sigh of relief and applause.

Immediately afterwards, cue the gushing at getting all of that for "only $1200" mixed with some, "I was thinking it might even go to $1999 but was fully expecting $1500. I can't believe I can get it for 'only $1200.' What a bargain!" and "Shut up and take my money."

Any remaining price shocked-naysayers should be met with the monthly payment argument: only $8.33 more per month (over 24 months) and just the usual beat down if that doesn't shut them down.

Next year: about May rumors imply the next, next "it" at $1999. Repeat sequence of events, concluding with us gushing we're getting that iPhone Xss for "only $1499"... "Shut up and take my money."

In both cases, we're all (self) hyped up such that we drag ourselves out of bed trying to give Apple "only $1200" and then "only $1499" at 3am in the morning. We may be missing a kidney and/or sending BarclayCard Executives to Hawaii again (or maybe they get to finally buy one of the Hawaiian Islands this time) but WE MUST HAVE THAT NEW IPHONE. MUST, MUST, MUST!

Price-shocked naysayers at $1499 vs. $1200 is met with "only $12.45" per month or "even better!!!" only $8.31 per month on the new (improved?) 36-month plan.

And subsequent to both, Apple reports "best quarter ever" and we write in countless threads "...but who makes the most profitable smart phone" and "$XXX Billion in the bank can't be wrong" as we march towards the time when we find ourselves paying $2499 and then $2999 for a smart phone, mostly because Apple wants to beat all prior records, and we'll pretty much pay anything if they apply the same formula to the marketing campaign.

There's lots of in the above, but we know there's also underlying truths in there too.

1000X likes to you Sir -- if I could.

 

[citysnaps]

Makes sense. Not surprised.

 

[toph2toast]

Clickbait. I noticed Apple stock is down today whereas most other tech stocks are up 1-2%.

It 100% is. They are claiming poor sales as the reason and the haters are eating it up!

 

[sidewinder3000]

iPhone X will be like the PowerMac Cube. Gorgeous, expensive, and short lived.

That is nonsensical. There is nothing about the successful, groundbreaking iPhone X that is anything like dismal failure of the ill-conceived cube.

 

[drewyboy]

Completely makes sense to not have too many premium SKUs.

You're making a joke right? I mean... looking at their iPhone and iPad line ups... yeah, this has to be a joke.

 

[Redbird9346]

Remember, they did the same thing with the iPhone 5. When they introduced the 5S, they replaced the 5 with the 5C.

 

[1098474]

"Ten-ning out the Ten"? I don't get it

I guess it was to x-pensive

 

[The Game 161]

so basically last year was the last year where we will see any iphone with touch ID...

 

[drewyboy]

No. Just because someone hates an iPhone, people immediately think they're poor and broke. I agree people should voice why they don't like it, but quit talking about price being the only reason people hate iPhones. Samsung and Google phones are almost just as expensive. Maybe people just don't like Face ID, the limited customization on a $999+ phone, the notch, etc.

Welcome to the Apple fans. Not all but some are this type of egotistical, always talk down to you attitude if you don't see it they're way. They justify folks criticism with them being "too poor". Even if a millionaire or billionaire criticized the device, they'd still attack them and say something like "hurts that you didn't get in on AAPL when it was low".

 

[rmoliv]

Yes because the iPhone X is a huge FAIL... Shame that so many actually took the bait. No way I'd have bought that crap.

 

[itsmilo]

How Louis Vuitton of them

 

[MacWorld78]

I still believe apple have made lots of mistake lately:

Mac Pro sale is flop
Software bugs
Price is too high for iPhone X
Pice is too high for iMac Pro

Soon iMac pro will stop selling just like iPhone x!

Apple go down and blackberry go up lol

 

[OneDunya]

I just changed the battery on my iPhone 6s and it is running like new I have no intention of upgrading my phone.

 

[drewyboy]

Buy used devices instead. There will still be plenty of people willing to shell out for a new phone every year....

Too bad they force iOS upgrades on you that aren't optimized for your device, thus leading to poor performance.

 

[falainber]

In other news, Honda will discontinue 2017 Civic when 2018 Civic is released.

Yes, but 2017 Honda Accord will not be discontinued when 2018 Accord is released. And neither will iPhone 8 be discontinued when iPhone 9 is released.

 

[62tele]

Sheesh.. cluttered, convoluted and confused is no way to go through product life. (To borrow from Dean Wormer)

 

[MNJohn]

Apple will discontinue the first-generation iPhone X when the second-generation model launches later this year, rather than bump the device down its smartphone lineup for lower than $999, according to KGI Securities analyst Ming-Chi Kuo, who clarified his earlier prediction with a follow-up research note today.

Kuo said that Apple keeping the current iPhone X in its smartphone lineup for a reduced price, such as $899, would likely cannibalize sales of the mid-range 6.1-inch iPhone with Face ID and a LCD display that he expects to launch in the second half of 2018 for between $650 and $750 in the United States.

An excerpt from Kuo's research note obtained by MacRumors on Monday:If accurate, Apple's smartphone lineup later in 2018 would consist of the second-generation 5.8-inch iPhone X, which will likely remain $999, a larger 6.5-inch version dubbed iPhone X Plus, and the mid-range 6.1-inch iPhone. Below that would likely be iPhone 8, iPhone 7, and iPhone SE models.

Here's how Apple's new iPhone lineup could look:

o iPhone SE: $349
o iPhone 7 and iPhone 7 Plus: $449 and $569
o iPhone 8 and iPhone 8 Plus: $549 and $669
o 6.1-inch iPhone with Face ID: $649 or $749
o 5.8-inch second-generation iPhone X: $999
o 6.5-inch second-generation iPhone X Plus: $1,099

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

My guess is that demand for the iPhone X is weak at current prices and that the improvements in the next generation will be minimal. Putting these two factors together would mean the simultaneous offering the iPhone X at a discounted price and the next generation at current iPhone X prices would result in a large percentage of customers choosing the discounted iPhone X rather than the new iPhone, substantially cutting into Apple's profits.

The smart phone market is maturing and it will be difficult for Apple to sustain its historic growth. That is why analysts are downgrading Apple.

 

[yesjam]

This 2018/2019 iPhone lineup looks like a mess. Of course, certain concessions must be made when dealing in the mobile phone market (including continuing sales of older model phones) but this lineup is too convoluted.

Per this rumour, the iPhone lineup will consist of:
1. Two premium iPhones (the iPhone X2 and iPhone X2+)
2. One standard iPhone (the 6.1" iPhone with Face ID)
3. Two standard 2017-model iPhones, one slightly more premium than the other (the iPhone 8 and iPhone 8+)
4. One premium mid-2016-model iPhone (the iPhone 7+)
5. One standard mid-2016-model iPhone (the iPhone 7)
6. One entry-level early 2016-model iPhone which may or may not be updated to be an entry-level iPhone of a higher calibre than the other 2016 and 2017 iPhones on this list (the iPhone SE or SE2)

Further, this iPhone lineup will consist of a possible 8(!) distinct designs (counting differences in design between standard and plus models which IMO are material enough to count as distinct and assuming the SE, if updated, will maintain distinct design elements).

One of the most complicated product lineups Apple has put to market in recent years.

 

[falainber]

It 100% is. They are claiming poor sales as the reason and the haters are eating it up!

Is "haters" a new name for investors?

 

[Dirtydutch]

Do you not know how this works by now? In about May, rumors will fly of some kind of iPhone X Magical Mega with a rumored price of (about) $1499... followed by another rumor also suggesting $1499... and then maybe one or two more in the weeks leading up to the big reveal. The rumors get us through the "I will never pay that much" outrage without actually costing Apple any sales, shifting us into nearly acceptance, except maybe still clinging to the idea that we won't pay that much for a phone. Nevertheless, one of our kidneys is probably listed on CL just in case we can't bare to NOT pay whatever the mothership asks for a new phone.

Then Apple takes the stage, reveals the new "it" with a few new features not available on prior phones, some software gee-whiz, maybe some kind of gimmicky feature only the kiddies will love too. Everyone will expect the $1499 price because the rumors have us pretty much there. Then Apple reveals "only $1200" to a big sigh of relief and applause.

Immediately afterwards, cue the gushing at getting all of that for "only $1200" mixed with some, "I was thinking it might even go to $1999 but was fully expecting $1500. I can't believe I can get it for 'only $1200.' What a bargain!" and "Shut up and take my money."

Any remaining price shocked-naysayers should be met with the monthly payment argument: "only $8.33 more per month" (over 24 months) and just the usual beat down if that doesn't shut them down.

Next year: about May rumors imply the next, next "it" at $1999. Repeat sequence of events, concluding with us gushing we're getting that iPhone Xss for "only $1499"... "Shut up and take my money."

In both cases, we're all (self) hyped up such that we drag ourselves out of bed trying to give Apple "only $1200" and then "only $1499" at 3am in the morning. We may be missing a kidney and/or sending BarclayCard Executives to Hawaii again (or maybe they get to finally buy one of the Hawaiian Islands this time) but WE MUST HAVE THAT NEW IPHONE. MUST, MUST, MUST!

Price-shocked naysayers at $1499 vs. $1200 are met with "only $12.45 more" per month (over 24 months) or "even better!!!" only $8.31 more per month on the new (improved?) 36-month plan.

And subsequent to both, Apple reports "best quarter ever" and we write in countless threads "...but who makes the most profitable smart phone" and "$XXX Billion in the bank can't be wrong" as we march towards the time when we find ourselves paying $2499 ("only $8.33 more per month on the new 120-month payment plan") and then $2999 ("only $8.33 more on the new 180-month payment plan") for a smart phone, mostly because Apple wants to beat all prior records, and we'll pretty much pay anything if they apply the same formula to the marketing campaign.

There's lots of in the above, but we know there's also underlying truths in there too.

This is too accurate...They know exactly how to "ease" you into buying just about anything they're going to put out...