2018 iPhones Could Start at $699, May Include Apple Pencil Support, 512GB Storage Option for OLED Models

[MacRumors]

Apple may introduce its upcoming 6.1-inch LCD iPhone with a starting price of around $699 to $749, according to industry analysis by TrendForce. The pricing strategy is said to be partly a response to lower than expected iPhone sales last year, and partly a result of competition from Chinese brands that have expanded their market shares with devices that offer high performance at affordable prices.

Three new iPhone models are expected to form Apple's 2018 lineup: two OLED models measuring in at 5.8 and 6.5 inches, and a 6.1-inch lower-cost LCD model. All three models will feature Face ID in lieu of a Home button, but TrendForce predicts the "budget" LCD device will be Apple's main device in terms of production share.

Image via TrendForce​

The specs upgrades would make new iPhones more favorable in the competition with Android phones. On the other hand, the cost of this model has been approaching that of iPhone 8 Plus due to the upgrades. However, the 6.1-inch LCD model would be positioned by Apple's main product this year, with a production share of around 50% in the new iPhone series. Apple is bound to adjust the prices of this model to meet the market expectation and to further expand its market share. Considering the cost reduction of components, TrendForce estimates the starting price of this LCD version at around $699-749.

As for the new OLED models, TrendForce expects the 5.8-inch device will have a lower starting price of $899 to $949, while the current-generation iPhone X, which starts at $999, will enter its "end of life" process due to the similarity in the specs of the two models. Meanwhile, the upcoming 6.5-inch device will target the "premium business segment" with a starting price of $999.

TrendForce believes Apple could introduce a 512GB storage option for the OLED models. In addition, Apple Pencil support may feature with the new iPhones, although it's unclear whether this also relates to just the OLED models. Respected analyst Ming-Chi Kuo has previously suggested that Apple Pencil support for a future iPhone is a possibility, although he doesn't believe iPhones will support Apple Pencil until 2019 at the earliest.

Apple is said to have been bargaining with its supply chain partners to reduce the cost of components, especially those which have been used in earlier generations of iPhone. That view tallies with earlier reports claiming Apple wants Samsung to reduce the price of its OLED display panels so it can cut the cost of current and future iPhone X models.

Price cuts to the display and other components would help Apple lower its bill of materials for the new models, with the savings potentially passed on to customers. For example, in line with TrendForce's prediction, RBC Capital Markets analyst Amit Daryanani believes the second-generation iPhone X will start at $899, down from $999.

TrendForce expects the production volume of the three new iPhones to be around 83-88 million units, potentially taking a larger share of the company's annual sales volume compared with the three models it released last year. Sales volume of iPhones in 2018 meanwhile is expected to remain flat or grow marginally by 2 to 3 percent, owing to the saturated smartphone market and the longer replacement cycle of phones globally.

TrendForce believes the two OLED models have been assembled by manufacturers since late July, while the assembly of the LCD models is scheduled for mid-September. Apple is expected to launch the trio of new iPhones in September.

Article Link: 2018 iPhones Could Start at $699, May Include Apple Pencil Support, 512GB Storage Option for OLED Models

 

[profets]

699 wouldn’t be surprising if it’s essentially replacing the spot that the iPhone 8 Plus (and previously 7 Plus) occupied.

 

[kiranmk2]

Surprised Apple couldn't force the proposed price of the X2 lower given that FaceID module manufacturing must be optimised by now and Samsung had a well-documented oversupply of OLED panels this year (hence the value of them decreases). Of course, this could simply be Apple squeezing a bit more margin out of the phones...

 

[netdudeuk]

Of course, they could always take a hit on their own margin.

 

[flyinmac]

Hmmm.... competitors increased market share by offering higher performance, features, and a lower price, while Apple’s sales were lower than expected.

Really???

Who could’ve seen that coming??? Oh, yeah... everyone outside Apple headquarters.

The question is... how much money did they have to pay for that market analysis?

 

[1098474]

Hmmm.... competitors increased market share by offering higher performance, features, and a lower price, while Apple’s sales were lower than expected.

Really???

Who could’ve seen that coming??? Oh, yeah... everyone outside Apple headquarters.

The question is... how much money did they have to pay for that market analysis?

Well said sir

 

[Taipan]

I hope not. This year‘s buyers should pay at least as much as I have paid last year, damn it!

 

[VulchR]

I wonder how much Apple is going to shaft users for the higher memory options.

 

[oddiecz]

64/256/512 seems too logical, 128/512? But I would expect this change next year.

 

[Dave245]

Interesting to see 512GB storage option. Will the X Plus have any factors other than a bigger screen that set it apart from the others, we need things like multitasking and maybe picture and picture especially for a 6.5” screen.

 

[oddiecz]

I wonder how much Apple is going to shaft users for the higher memory options.

Drop 256, make people buy expensive 512?

 

[Royksöpp]

Is it just me or does it seem like this is the most unexciting release to date. I'm more interested in the iPad and Apple Watch. Another year, another iPhone. Bleh...

 

[rembert]

So, no more 4” phones like the SE? Or will it be the ‘one more thing’-surprise?
I’ve seen too many people switching back from larger iPhones to just the SE.
I myself am happy with the 4” size, never even considered to moving to a larger phone. Yes, I’ve checked them out. They look gorgeous but the increased size doesn’t work with me even though I need to use my reading glasses.

 

[Princejb134]

Is it just me or does it seem like this is the most unexciting release to date. I'm more interested in the iPad and Apple Watch. Another year, another iPhone. Bleh...

im excited because im still using my iphone 6s. I will upgrade this year for sure regardless of what releases

 

[Frantisekj]

Question is what processor LCD model will have. Whethetr A12 then whether will have same frequencies and what other differencies there can be other then LCD and single camera?

 

[flyinmac]

I wonder how much Apple is going to shaft users for the higher memory options.

Base model: 16 GB capacity reintroduced

Next option: 512 GB for an additional $599

 

[oddiecz]

Is it just me or does it seem like this is the most unexciting release to date. I'm more interested in the iPad and Apple Watch. Another year, another iPhone. Bleh...

im excited because im still using my iphone 6s. I will upgrade this year for sure regardless of what releases

Put a really decent camera in the iPhone X and add two hours of battery life and you have the best release in the last five years. Add split window multitasking to the X Plus and meaningfully push the iPhone forward as a productivity machine. Might happen. I'm not saying it will, I refuse to be bored until the keynote bores me

 

[oldmacs]

So what no device even the same size as the 4.7 inch phones? The iPhone 8 is already too big for me. Would it kill them to spec bump the SE?? GAHHH

 

[Fynd]

"Apple Pencil would be offered as an option as well." - Source

That's a big thing to ignore in the MR article. This would be huge.

 

[EB-V10]

Really wish the 6.06" unit had a OLED display. Been wanting something with a slightly bigger screen for a while but find the Plus models to be a bit too big.

 

[44267547]

Is it just me or does it seem like this is the most unexciting release to date. I'm more interested in the iPad and Apple Watch. Another year, another iPhone. Bleh...

It’s just you. I always enjoy the September keynotes regardless, being that we don’t know exactly what to expect, other than its Apples annual iPhone event. But three new iPhones to me seems fairly promising and opens up to an expanded demographic for those who might want the more affrobale 6.1 LCD iPhone (Which is the wildcard currently) or the larger 6.5 iPhone X, and of course the 5.8 X.

I Can tell you what would make it more exciting though, A refreshed iPhone SE *if* that were to launch.

 

[Nozuka]

"Apple Pencil would be offered as an option as well." - Source

That's a big thing to ignore in the MR article. This would be huge.

That's definitely a huge pen for a phone

 

[Val-kyrie]

According to TrendForce, Apple has been bargaining with its supply chain partners to reduce the cost of components, especially those which have been used in earlier generations of iPhone. That view tallies with earlier reports claiming Apple wants Samsung to reduce the price of its OLED display panels so it can cut the cost of current and future iPhone X models.

LOL. This has more to do with increasing profit margins so Apple doesn't have to increase the ASP (Average Selling Price) of its iPhones in order to generate more profits for shareholders.

 

[Porco]

Just want a spec-bumped SE. Money on the table Apple, with your name on it, if you want it (maybe not? I know you have a lot already! ).

 

[Appleaker]

It’s true, I thought we’d established this.