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

[Apple_Robert]

Will this be reflected in the retail price? That is the $1,000 question. I won’t hold my Apple breath.

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.

You will do what Apple tells you and like it.

 

[PickUrPoison]

I hope so. The main article suggests otherwise, unless I just went dyslexic.

The article is ridiculous suggesting the 5.8” OLED 2018 X.2 would be cheaper than the 6.1” LCD iPhone 9 Plus, which will be in the range of $749-$799.

 

[Blaze4G]

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....

Samsung Panels I believe are still in high demand. I think Google wanted to use Samsung for their Pixel 2xl but Samsung could not produce enough and or too expensive.

If a consumer buys in bulk then they usually get a discount. Hence, apple got a big discount for the 2017 iPhone X because they predicted they needed let's say 100 million. Because that demand was not met by Apple, Samsung turns around and says well since you're only going to need 80 million for the 2018 iPhone X then you receive a smaller discount.

Arbitrary numbers where used.

 

[Nikiaf]

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.

More manageable is not the same thing as affordable. As a Canadian, I can tell you that an iPhone X will cost you $550 up front, with a minimum of an $87 per month plan. This is absurdly expensive for a mobile phone and is tough to justify regardless of your income.

 

[Freida]

I guess. Whatever works for you. $200 is nothing though.

$200 is not nothing. Its still $200 that can buy food for a week at least. (months in certain countries).

Also, to those that say this is not a phone and they don't need to buy gps, camera etc.? Please wake up! That time has passed for this justification. EVERY phone now has these features so that lame excuse no longer works.

iPhone X might be technically powerful but design and price is awful and Apple did cross the line here for many customers.

Overall, I really hope that people will vote with the wallet this time as otherwise we will have Apple PHONES costing $2000 soon or more!

and btw. all these technological marvels usually come in 2-3 years to all mid range phones so people really need to ask if having the latest and greatest at the time is really crucial to them or if they are just spoilt brats.

 

[thenewyorkgod]

I'd love a new SE in the same form factor and size, but with edge to edge screen so we can bring that 4" up to 4.8"

 

[DNichter]

$200 is not nothing. Its still $200 that can buy food for a week at least. (months in certain countries).

Also, to those that say this is not a phone and they don't need to buy gps, camera etc.? Please wake up! That time has passed for this justification. EVERY phone now has these features so that lame excuse no longer works.

iPhone X might be technically powerful but design and price is awful and Apple did cross the line here for many customers.

Overall, I really hope that people will vote with the wallet this time as otherwise we will have Apple PHONES costing $2000 soon or more!

and btw. all these technological marvels usually come in 2-3 years to all mid range phones so people really need to ask if having the latest and greatest at the time is really crucial to them or if they are just spoilt brats.

For people who are struggling for $200, they probably shouldn't be spending $799 on a phone. If they can't afford it, they don't buy. No big deal.

 

[PickUrPoison]

The bulk of the R&D has already taken place for the current version iPhone X. The price will naturally drop for the next version of the iPhone X. Hopefully this does not translate to the new version of iPhone X not having any significant improvements.

I don’t expect much besides A12, FaceID 2 and possibly camera improvements. Maybe a slightly improved display. With a $100 price drop, I don’t expect RAM to increase to 4GB, that’s probably a 2019 thing.

 

[H3LL5P4WN]

Too late - Already bought a Pixel 2. I'm selling my iPhone 7...
Likewise I haven't installed any internet of things in my 120 year old house, because I can switch the lights on myself. And I can boil the kettle and change the thermostat etc.

The point is - I just don't need all of this technology. Some of it's nice, but at what cost? What's the environmental impact?

My condolences. I tried my friend's Pickle 2 XL and no thanks. If that's the best Android has to offer, then there are billions of people in this world with standards that are far too low.

All of my IoT devices save me time and money in the form of lower energy bills. So there's your environmental impact.

 

[SnorkyB]

Unfortunately I’ll be saying goodbye to apple and the iphone, after over 10years i don’t trust them regarding updates or company integrity regarding paying customers.. one update to many now that ‘conveniently and coincidentally’ slows everything on my phone down.. just in time for the new release.. can’t wait to spend £2k on a new phone! (Yeah right).. byeeeee apple

 

[rom3o]

I guess. Whatever works for you. $200 is nothing though.

I don’t know how long you know Apple, but it used to be a company where Jobs proudly announced that retail prices stayed the same although they packed a product update with all those fancy, industry leading innovations. Remember the iPhone 4 keynote? So much improvements over the 3GS (all new glass/metal design, Retina display, doubled RAM, gyro, ...), nevertheless no price increase at all. But today the iPhone 8 with it's four year old design sells for 50 bucks more because they implemented a $0.50 coil for wireless charging... I’m done with those constant price increases and Cook‘s ridiculous explainations for them. We’re not stupid.

 

[Baymowe335]

Prices are going higher, just watch.

Apple is selling plenty of iPhone X at $999+ and don't let these speculators tell you there is "weak" demand. Literally ALL the news from Apple On IPhone X is positive. Numbers AND commentary. No one knows unit sales, but do the math based in Q1 ACTUALS. ASP was almost $800 in the recent Quarter, unit sales were up on a constant 14 week basis, and iPhone revenue was UP over 20% y/y on a 14 week basis.

IPhone X was only available 2 quarters in FQ1.

All of you hoping iPhone X flopped and Apple will reduce prices because they "learned" they won't sell at $1000+ are wrong. All Apple learned is they can charge higher prices. X+ will start at $1199.

So funny yall think the X failed after the record numbers Apple just put up.
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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.

Wrong. See above.

 

[DNichter]

I don’t know how long you know Apple, but it used to be a company where Jobs proudly announced that retail prices stayed the same although they packed a product update with all those fancy, industry leading innovations. Remember the iPhone 4 keynote? So much improvements over the 3GS (all new glass/metal design, Retina display, doubled RAM, gyro, ...), nevertheless no price increase at all. But today the iPhone 8 with it's four year old design sells for 50 bucks more because they implemented a $0.50 coil for wireless charging... I’m done with those constant price increases and Cook‘s ridiculous explainations for them. We’re not stupid.

Been using Apple products since 2006, aware of the history. I also am aware that things change and it's a business. Apple doesn't owe me anything. If I don't like a product, I don't buy it. Nothing has changed.

 

[newdeal]

my 6S still does everything that I want it to do. No reason to drop $1000 to replace it with something that doesn't have touchID, doesn't have a headphone jack, and doesn't improve my life in any way over what I already have

 

[Baymowe335]

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.

Please stop with the Android compare. Compare that with the $950 Note. Why should ANDROID owners pay a premium for a phone that runs Android and costs 3X as much?

Apple users pay more because of iOS, support, fashion, etc.

Please stop comparing iOS to Android like they are the same. No one wants Android when they use iOS. It's better to ask Android users why they buy flagship Android phones.

 

[BeamWalker]

Where I live traditional carriers are under heavy competition from cheap and cheerful new and smaller ones who offer 90% of the power for 30% of the cost - albeit often don't offer premium handsets with it. So a lot of people looking for phones as a one-time purchase or as a 24 month plan. With that in mind 1000€+ is a very niche-market.
As the consequence the big carriers can no longer subsidise handset as they did 2+ years ago. Combine that with the fact that costs for them go up steadily, a lot of people who paid 99€ upfront for a phone a couple of years back have now to pay 499€ - and this is not something a lot of people want to do.
I still play Pokemon Go from time to time, so I see a lot of people with their phones and the low adaption rate of the iPhone X is still staggering even with what I said before in mind.

iPhone is a gateway to the Apple ecosystem, so imho Apple should really consider a more competitive price. Just reducing the price of the 6S, 6SS and 6SSS is not the way to go, because they feel like old tech which is comparatively still much more than the competition.

 

[IowaLynn]

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.

Like bringing more design and manufacturing under Apple and now t rely on sole supplier Samsung. Also the Intel vs Qualcomm for modem. There is room for cost efficiency.

 

[roncron]

Did I read correctly that Apple will cut the cost of producing the 5.8” X by using cheaper components??

As Brian Tong would say, “That’s a bad Apple!”

 

[PickUrPoison]

Prices are going higher, just watch.

Apple is selling plenty of iPhone X at $999+ and don't let these speculators tell you there is "weak" demand. Literally ALL the news from Apple On IPhone X is positive. Numbers AND commentary. No one knows unit sales, but do the math based in Q1 ACTUALS. ASP was almost $800 in the recent Quarter, unit sales were up on a constant 14 week basis, and iPhone revenue was UP over 20% y/y on a 14 week basis.

IPhone X was only available 2 quarters in FQ1.

All of you hoping iPhone X flopped and Apple will reduce prices because they "learned" they won't sell at $1000+ are wrong. All Apple learned is they can charge higher prices. X+ will start at $1199.

The 2017 X would normally see a $100 price drop this year, so I don’t see much reason that a 2018 5.8” OLED can’t price at $899, with little change from this year’s X. Yes, they could maintain a $999 price point but they’ll sell more at $899.

$999 becomes a hard sell against a $749-$799 6.1” LCD that has FaceID, will people really pay an extra $200-$250 to get OLED? Also the 8 Plus will drop to $699. So I don’t think a 5.8” OLED stays at $999.

I think the OLED 6.5” Plus model will be $1,049 max and sell very well (though I’m not sure it will outsell the smaller 5.8” model, simply due to price and the fact that the 5.8” is a pretty great size). This will keep ASP high while allowing Apple to sell 225 million rather than 215 million.

 

[rtomyj]

Too late - Already bought a Pixel 2.

That’s nice man. And really, the quoted text is all you had to write. I don’t know why people ditching iOS always follows some kind of justification. No one cares. If you come back a year later no one cares. If you stay no one cares.

 

[PickUrPoison]

Did I read correctly that Apple will cut the cost of producing the 5.8” X by using cheaper components??

As Brian Tong would say, “That’s a bad Apple!”

I think the analyst reasoning is incorrect. BOM cost is dropping due to the amortization of FaceID and OLED R&D costs, and economies of scale. The 2018 X will be very similar to this year’s model but with A12.

 

[9081094]

10% reduction in production cost doesn’t has to translate in selling price. Hey, we’re talking about Apple here .

If it would translate in selling price we could get an macpro even cheaper as an iMac. Or a Mac mini for 99 dollars by now.

 

[78Bandit]

Assuming Apple reduces the MSRP by 10% and they drop the rumored $700 LCD device then my Apple phone choices this September will be a $900 X2, a likely $1,050 X2 Plus, a carryover $600 iPhone 8, and a carryover $730 iPhone 8 Plus.

That leaves a huge hole for a current generation phone in the $700 range that was to be filled by the new LCD model rather than a five-generation old design. Sorry Apple, but when looking at two pretty identical phones with the iPhone being $200 more expensive than a competitive Galaxy, the Galaxy starts to look really good.

 

[DNichter]

That’s nice man. And really, the quoted text is all you had to write. I don’t know why people ditching iOS always follows some kind of justification. No one cares. If you come back a year later no one cares. If you stay no one cares.

They feel like they are sticking it to Apple somehow. As you said, nobody cares.
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Assuming Apple reduces the MSRP by 10% and they drop the rumored $700 LCD device then my Apple phone choices this September will be a $900 X2, a likely $1,050 X2 Plus, a carryover $600 iPhone 8, and a carryover $730 iPhone 8 Plus.

That leaves a huge hole for a current generation phone in the $700 range that was to be filled by the new LCD model rather than a five-generation old design. Sorry Apple, but when looking at two pretty identical phones with the iPhone being $200 more expensive than a competitive Galaxy, the Galaxy starts to look really good.

I don't think there as many people as you think deciding between iOS and Android. Most people just stick with what they know/like.

 

[cocky jeremy]

Thank you for beta-testing.

Now give me back my LCD.

Definitely no problem. I've enjoyed every second of it.

No.