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Ming-Chi Kuo Returns With 2018 iPhone Details: Lower Pricing, September Launch for All Models

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Well-known Apple analyst Ming-Chi Kuo has returned today with his first Apple-related research note for his new firm TF International Securities. According to Kuo, Apple's pricing strategy will be "more aggressive" for the three iPhones rumored for September 2018, an effort to boost shipments of the models this year.

2018iphonerenderings2.jpg


One of the main reasons Kuo says is behind the aggressive pricing strategy is Apple's "concern over the negative impact of a higher price" for its 2018 iPhones. Last year, the company received some blowback on the top-tier pricing of its iPhone X, which began at $999 in the United States for 64GB.

Now, Kuo states that the 6.5-inch OLED "iPhone X Plus" will be $900-$1,000, the second generation OLED iPhone X will be $800-$900, and the new 6.1-inch LCD iPhone will be $600-$700. Kuo reiterates that all 2018 iPhones will have a full-screen design and Face ID. The analyst also outlined more reasons behind Apple's new pricing strategy:
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.
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Secondly, Kuo believes that Apple will announce all three new iPhone models at an event in September. Furthermore, all three iPhones will launch in September, including the LCD model which some reports have previously pegged for a November debut.

This is Kuo's first research note since departing KGI Securities in April. At the time, it was believed he would lessen his focus on Apple to look at other emerging industries, but it seems we can still expect reports on Apple and its supply chain from Kuo.

Article Link: Ming-Chi Kuo Returns With 2018 iPhone Details: Lower Pricing, September Launch for All Models
 
Article Link
https://www.macrumors.com/2018/06/04/ming-chi-kuo-returns/
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Reactions: AfridiGerrard786, KeanosMagicHat, polee and 1 other person
It would be great if the early adopter fee for the iPhone X phones was reduced after only one year. Might actually get me to buy one over the 9.
 
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Reactions: SCARY GAY DAD
As manufacturing costs improve, costs will come down. Basically what I was expecting. I am interested to see what this budget phone is like, but I would imagine it will attract a lot of buyers. 3D touch is something I don't use and Apple's LCD screens have always been the best. Seems like a good value. I am sure some will spin lower prices for consumers into a negative about Apple somehow.
 
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Reactions: Will do good, 44267547, Baymowe335 and 1 other person
Having all the new iPhones include Face ID with the new design makes sense, but why will the LCD model be slightly bigger than the standard 10? Doesn't seem to make a lot of sense.

Also seems odd that there won't be a plus model of the LCD phone, though I suppose this will oversaturate the line a bit with too many SKU's.
 
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Reactions: TimSHB, SRLMJ23 and SteveOfTheStow
mdelvecchio said:
By “concern”, you mean record sales? First time in iPhone history the top-tier model is also the best-selling model. Oops.
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I'd be shocked if there wasn't some concern within Apple as unit sales failed to grow in the holiday quarter - but overall revenue was propped up by extremely high ASP of the X. Apple would much prefer 5-10% unit growth PLUS slightly higher ASP, and this 2018 strategy will probably achieve that. It's a solid adjustment, if true.
 
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Reactions: sunwukong, martyjmclean, john123 and 3 others
This isn't new information, with "$900-1000" meaning $999, "$800-900", meaning $899, and "$600-700" meaning $699.
They don't want to sell a phone starting at over $1000, and in general the lowered pricing will have a positive effect on sales. This year is definitely a year where they are sorting out pricing for a lot of products, which has very rarely been done under Tim Cook, especially within the last few years.
 
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Reactions: imageWIS
This is like when apple lost its mind with the over 10k price for the first watch trying to be of the likes of Rolex.

Hardly anyone bought it.

Now for those that went and bought the first X will be a little upset if the price for the newer X is way cheaper than what they paid for for the first edition of their X. This would anger me if I paid for the phone full price instead of a monthly payments.
 
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Reactions: sunwukong, xalea, NIKKG and 3 others
Makes sense. Last year a lot of the tech was bleeding edge. Combine that with a new iPhone X Plus model and you'd end up with that model starting around $1199 which is a bit crazy. By introducing the iPhone X Plus model at $999 you can still help keep the average selling price high while pushing more volume at the low end. If that price turns out to be true then I'd expect the lineup to look like this:
  • iPhone X Plus: $999
  • iPhone X: $849
  • iPhone (new edge-to-edge): $699
  • iPhone SE (new edge-to-edge): $499
Additionally they could add a storage capacity option of 512GB on the two X models to bump ASP by a bit.
 
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