WSJ: Apple Expects Lower-Priced LCD Models to Represent Majority of iPhone Sales in Upcoming 2018 Lineup

[MacRumors]

Apple is widely rumored to introduce three new iPhone models in September, including a second-generation iPhone X, a larger version dubbed the iPhone X Plus, and a lower-priced but lesser-featured version.

Given the iPhone X Plus is expected to have an OLED display, like the iPhone X, it would be reasonable to assume that the majority of iPhones that Apple plans to manufacture in 2018 will be of the OLED variety. According to The Wall Street Journal, however, that might not be how things play out.

The report cites sources involved with Apple's supply chain who claim that Apple now expects LCD models to make up the majority of iPhone sales in its upcoming lineup, expected to be released this fall.

Apple initially wanted roughly equal production of iPhone models with LCDs and OLED displays, but now plans to make more of the LCD model, referring to the rumored lower-priced, lesser-featured 6.1-inch iPhone, as it supposedly anticipates strong customer demand for the more affordable X-like model.

It's not entirely clear if "LCD models" will include iPhone 7, iPhone 8, and iPhone SE models, which will likely remain for sale alongside the 2018 iPhones, and would certainly help tip the scale towards LCD.

The Wall Street Journal says Apple's plans are a "sign of consumers' sensitivity to the price of smartphones," citing analysts who believe demand was weaker than their initial forecasts for the iPhone X "due mainly to its price tag." The flagship device is priced from $999 in the United States.

The report adds that Apple will likely retain at least one lower-priced, LCD-based iPhone in its 2019 lineup too, rather than shift entirely to OLED, to ensure customers have an affordable option to choose from.

A report out of Korea last month said Apple will switch to OLED for all of its 2019 iPhones, a claim that some analysts had already cast doubts on.

Apple analyst Ming-Chi Kuo, now with research firm TF International Securities, expects the next iPhone X to start at $800-$900, the so-called iPhone X Plus to start at $900-$1,000, and the 6.1-inch iPhone to start at $600-$700 in the United States, with orders for all three beginning in September.

Kuo has previously said the 6.1-inch iPhone will have a nearly edge to edge display, with a notch for Face ID, but with tradeoffs, including an LCD instead of OLED display, an aluminum frame rather than stainless steel, no 3D Touch, and a single-lens rather than dual-lens rear camera system.

If accurate, many customers may indeed opt for what is essentially a budget iPhone X, with a $300 to $400 cheaper price tag. That doesn't mean the current iPhone X was too expensive, though, as in February, Apple said it was the "top selling iPhone" every week since it launched in early November.

Article Link: WSJ: Apple Expects Lower-Priced LCD Models to Represent Majority of iPhone Sales in Upcoming 2018 Lineup

 

[OldSchoolMacGuy]

But... but... the other guys said all models would be OLED..... Even the iPhone Poverty Edition would get all the same stuff the high-end did....

 

[meme1255]

I want something as big as the iPhone 8 or smaller.

 

[DJMarty]

Yay. Means more high end models available for me!

iPhone Poverty Edition was way funny tho....

 

[Cesar Battistini]

No 3D Touch no sale for me.

 

[JPack]

Makes sense. The 6.1" is targeted at the huge swath of iPhone 6 and 6 Plus owners. The 6.1" keeps the single rear camera and implements software 3D Touch.

Many iPhone 6 and 6 Plus owners see no compelling reason to upgrade to iPhone 7 or 8. iPhone X was too expensive.

It doesn't cannibalize the iPhone X too much and gives what most consumers want: large display and a new form factor.

 

[DotCom2]

As we all well know now, supply chains don't always get it right.

 

[drewyboy]

"That doesn't mean the current iPhone X was too expensive, though, as in February, Apple said it was the "top selling iPhone" every week since it launched in early November."

That could mean that for example the share was iPhoneX 34%, iPhone8 33%, iPhone8+ 33%. So yes, it could have been the top selling but if you look at the iPhone8 line, it sold much better than the X. Of course they're very careful with their words.

What I'd most be interested in is what is iPhoneX vs all other iPhones, that would tell you how much people are actually adopting the latest and greatest.

 

[bhodinut]

No 3D Touch no sale for me.

I've turned off 3D Touch off on my X. I don't see the point. I could live without it.

 

[Rogifan]

Right because these supply chain rumors have been so right in the past.

 

[Agit21]

No 3D Touch no sale for me.

There is not a single reason to use 3D Touch. Just disable it and use long press + hold.
In iOS 12 you’ll be able to move the cursor by pressing and holding the spacebar.

 

[44267547]

Seems fairly obvious because of the more affordable price point which which model will sell the most. If the 6.1 LCD iPhone starts at $799, offering Face ID like features with an aluminum chassis, most consumers are going to find that very appealing. Not to mention, Apples LCD panels are still some of the best in the industry. I suspect that phone will be the most constrained at launch even over the 6.5 rumored iPhone X plus. There are some who are not interested in a phone in a 6.5 X simply because of the size and price

 

[JPack]

"That doesn't mean the current iPhone X was too expensive, though, as in February, Apple said it was the "top selling iPhone" every week since it launched in early November."

That could mean that for example the share was iPhoneX 34%, iPhone8 33%, iPhone8+ 33%. So yes, it could have been the top selling but if you look at the iPhone8 line, it sold much better than the X. Of course they're very careful with their words.

What I'd most be interested in is what is iPhoneX vs all other iPhones, that would tell you how much people are actually adopting the latest and greatest. The fact that the rumors are pointing to a new low end tells me the "other iPhones" group was probably selling better.

The fact that Apple is introducing a relatively low-cost 6.1" model already tells you the iPhone X was too expensive.

Why launch a high volume volume 6.1" model if iPhone X was selling? Isn't Apple strictly high margin?

 

[44267547]

There is not a single reason to use 3D Touch.

I completely disagree. I use 3D Touch regularly, and the best part about it is the shortcut navigation. I can access parts of my email, third-party applications, messages, peek/pop are great for photos. It’s merely a convenience tool. The problem with 3D Touch is, many don’t know about it and it’s functionality, because Apple doesn’t market this specifically.

In iOS 12 you’ll be able to move the cursor by pressing and holding the spacebar.

You do realize that in iOS 11 you can use the same feature by dragging the cursor by holding down the space bar with the keyboard.

 

[slimtastic]

This is common sense. The cheaper "normal" iPhone will of course sell more...

 

[creediddy]

This spells trouble for Samsung's S9 and Note 9. Apple will outsell last years numbers easily by at least 8-10% growth.

 

[Kaibelf]

In other news, my local McDonald's sells more units from the dollar menu than my local steakhouse does through their prix fixe menu. I'm fine with paying for a very nice dinner once a year, but I understand that many are only ever up for the quarter pounder.

 

[dominiongamma]

No 3D Touch no sale for me.

Hoping they get rid of it I forget it’s even there

 

[Peepo]

I completely disagree. I use 3D Touch regularly, and the best part about it is the shortcut navigation. I can access parts of my email, third-party applications, messages, peek/pop are great for photos. It’s merely a convenience tool. The problem with 3D Touch is, many don’t know about it and it’s functionality, because Apple doesn’t market this specifically.



You do realize that in iOS 11 you can use the same feature by dragging the cursor by holding down the space bar with a keyboard.

Wow that is only feature of 3D Touch I used. Have to disable 3D Touch to use space bar though. Disabled now on my iPhone X and will see if I miss it at all. I notice right away I cannot select text like I did with 3D Touch.

 

[ghanwani]

Patiently waiting for the SE 2. The rumored cheap phone is going to have a bigger case than the iPhone X!

 

[ApfelKuchen]

The trouble with supply chain rumors is that journalists and analysts are dependent on sources who talk. Considering Apple's demands for secrecy, all it takes is a supplier or two who manages to maintain that secrecy to throw off all the estimates.

Apple has proven that a substantial portion of their customer base is willing to pay $1000+ on an iPhone. That's a "win" on every one of those iPhones sold. In the end, whether the percentage of the high-end phone makes it the #1 product or the #3 hardly matters, so long as the percentage continues to be adequate.

 

[carpleror]

I hate features being teathered to a screen size. The 6.1 is literally the perfect sized phone, especially for people with small hands like me. But I don’t want to sacrifice features for size. Apple needs to change that ish, the 6.8 is too damn large!

 

[blairh]

I'm excited to trade in my X to AT&T for the 'cheaper' 6.1" iPhone.

I believe it will start at $700.

X2 at $900.

X Plus at $1000.

No way the new X gets a $200 price cut.

 

[bushman4]

Something for everyone!!

Apple just make sure to pack enough bells and whistles in the new OLED iPhones to make them worth the price!

 

[essential]

It all depends on the final price points. I have an iPhone 6 Plus and will be upgrading this cycle. For me it'll be between the 6.1" and the 6.5" X Plus.

Apple always tends to limit something important in their budget models, and I can't see us only giving up 3d touch and a stainless steel frame ... LCD isn't even a downgrade to many of us since it's all we've ever known.

My assumptions is the 6.1" will be limited to a single 64GB model, or something along those lines, which will push some of us to other models because it's missing a key feature (in my case I'd like a 256GB model, 128GB minimum). When the 6.1" is announced, there will be at least one key compromise that comes along with it that we don't know about yet that will push some who thought the'd go with the 6.1" to actually go with the X or X Plus.

If Ming-Chi Kuo's price points are correct ($600-$700 for the 6.1") vs ($900-$1,000 for the X Plus), I'd def lean toward the 6.1" if I can get a 256GB model for $300-$400 less. If the price difference between the models is $200 or less then I'm likely to spend more on the X Plus.