Second-Generation iPhone X Estimated to Cost Apple Up to 10% Less to Manufacture

[MacRumors]

Apple has managed to reduce the manufacturing cost of its iPhone X successor to a level much lower than the current flagship model, according to DigiTimes' research analyst Luke Lin.

Lin cited information from Apple's upstream supply chain as indicating that the new device's MBOM [manufacturing bill of materials] will be more than 10% lower than that for iPhone X. He added that the MBOM of the iPhone X was more than US$400 in 2017.

Apple is rumored to be introducing three iPhones in 2018: The first is said to be a second-generation version of the iPhone X, with the same 5.8-inch OLED display, while the second can be thought of as an "iPhone X Plus" with a larger 6.5-inch OLED display.

Apple is also reportedly planning to introduce a new, more affordable 6.1-inch iPhone with an LCD display. However, recent engineering samples from the 5.8-inch device are said to show components with lower-level specifications or lower capacities than those of the 6.1-inch LCD iPhone, with LPDDR memory being one of the major differences.

According to Lin, the cost reduction could see Apple position the new 5.8-inch device as the cheapest model of all three next-generation iPhone models. The analyst also believes a project to develop a 5.8-inch LCD iPhone has been suspended since the end of the Lunar New Year holidays in mid-February and may be eventually terminated.

Lin reckons weak demand for iPhone X meant Apple needed a lot less OLED panels from Samsung than it said it would, which gave the Korean firm more bargaining power with regards to panel quotes for the next generation of iPhones. However, Apple has supposedly reached an agreement with Samsung and secured "satisfactory terms" that will prevent display panel cost increases.

DigiTimes' sources often provide reliable information, but the site has a mixed track record when it comes to interpreting that information and accurately deciphering Apple's plans, so it would be wise not to base any future purchasing decisions on today's report.

Article Link: Second-Generation iPhone X Estimated to Cost Apple Up to 10% Less to Manufacture

 

[tito2020]

i heard this on the news 2 days ago hopefully prices will not be bad.

 

[martyjmclean]

Good news! I love my iPhone X but two grand for a phone is excessive.

 

[Tech198]

its business as usual.... lower the cost to grab all they can get, then raise the prices because we can't keep selling at this low price point.

 

[Fanboi4life]

They should have never priced the X at over 1k. Apple makes enough money from their die-hards and small initial profit margin wouldn't have killed them if they knew overtime they could reduce costs.

 

[icanhazapple]

holy fragmentation. The 5.8 iPhone will have lower end specs than the 6.1? That is strange.

All I know is that I won't be buying another iPhone until they have one available for purchase in the 5.8-6.1 range, with 4GB of memory. I don't care whether it's an OLED or LCD screen. Performance + 5.8-6.1 size range + dual camera are the things that matter to me.

 

[Cesar Battistini]

They made it a 1000 dollars, for many it’s an unachiavable desire. Now they reduce the price and sell like crazy.

 

[Skeith]

Thank you for beta-testing.

Now give me back my LCD.

 

[davie18]

Thank you for beta-testing.

Now give me back my LCD.

Why?

 

[izyreal]

As an iPhone X owner, the price of the next phone had better drop. There is no way I’m going to pay $1K for the iPhone Excess.

 

[Rojaaemon]

It depends upon what the meaning of the words 'could be' could be.

 

[44267547]

They made it a 1000 dollars, for many it’s an unachiavable desire

I wouldn’t say it’s “unachievable”, with carrier incentives and monthly installed payments, I would say the majority likely finance their phones in today’s smart phone industry. The majority do not pay out right for a $1000 iPhone, when its likely more manageable for monthly installed payments for the consumer.

 

[iPhysicist]

its business as usual.... lower the cost to grab all they can get, then raise the prices because we can't keep selling at this low price point.

Do you refer to the article or something completely different because I can’t see the connections?

 

[Freida]

The price has to come down. The X is way to expensive and they priced many people out (myself including). So if the price becomes reasonable then I might consider it although I still struggle with the notch design so I'm waiting to see what happens there.

 

[Fanboi4life]

...when its likely more manageable for monthly installed payments for the consumer.

That option is more attractive when they get to finance the phone at a 0% interest rate.

 

[44267547]

Thank you for beta-testing.

Now give me back my LCD.

That’s now what “Beta” means. Also, They never took away the LCD display, which if anything, it’s been reported multiple times that Appl wille be offering a 6.1 LCD iPhone X in the fall as well.

 

[mcru21]

They made it a 1000 dollars, for many it’s an unachiavable desire. Now they reduce the price and sell like crazy.

My thoughts exactly. I’d get one at $899 and I suspect lots of others will do the same.

 

[Donfor39]

They made it a 1000 dollars, for many it’s an unachiavable desire. Now they reduce the price and sell like crazy.

Exactly brave move into 1k market creation

 

[PJL500]

Design and technical innovation staff at Apple have been retrained as cashiers. 'Good short-term move.

 

[AutisticGuy]

Wait a minute. Apple having less demand for OLED panels gave Samsung more bargaining power on the price of the OLED panels they sell? I'm pretty sure that less demand usually means the buyer has more bargaining power? Supply and demand and all that jazz....

 

[Reason077]

Dear Apple,

We need an iPhone X-style "all screen" iPhone with reduced size and weight. Bring it back to around the iPhone 6/7/8 dimensions, or even slightly smaller. But with the larger all-screen display.

Thanks!

 

[McScooby]

Remember, this is , MBOM goes down Retail must go up!

 

[MrGuder]

Apples realizing they are not hitting their goals in sales...most people are not upgrading and will not pay $1200.00 for a phone. My 6s is working fine and with a new battery soon...will be like new phone.

 

[MacFan23]

Dear Apple,

We need an iPhone X-style "all screen" iPhone with reduced size and weight. Bring it back to around the iPhone 6/7/8 dimensions, or even slightly smaller. But with the larger all-screen display.

Thanks!

This is basically what the X is.

 

[BruceEBonus]

It’s why people are realising there’s another world out there for a quarter of the price do you really NEED that Animoji. That OLED screen? That Portrait mode? Really? (Whispered Answer: No. you actually don’t) Can you really justify £750 more than this fully featured dual lens 64gb costs for the draw of IOS? (Answer: No you can’t. But. You will!)

https://m.johnlewis.com/honor-9-smartphone-android-5-15-inch-4g-lte-sim-free-64gb/p3371779

£269! Top quality product. This is not a cut down phone and competes with high end stuff today!

No longer is it the case of “What would Samsung do?” Its now “Why have I been spending so much on stuff Im only paying for for sheer vanity and bragging rights really?”

Competition is a GOOD thing. As the competitors give more value for less cash - Apple’s insistence on reducing features for more cash can no longer be assumed to work any more I’m afraid.

Er. That’s it.