KGI: Apple to Discontinue iPhone X Rather Than Sell at Lower Price When Second-Generation Model Launches

Apple will discontinue the first-generation iPhone X when the second-generation model launches later this year, rather than bump the device down its smartphone lineup for lower than $999, according to KGI Securities analyst Ming-Chi Kuo, who clarified his earlier prediction with a follow-up research note today.


Kuo said that Apple keeping the current iPhone X in its smartphone lineup for a reduced price, such as $899, would likely cannibalize sales of the mid-range 6.1-inch iPhone with Face ID and a LCD display that he expects to launch in the second half of 2018 for between $650 and $750 in the United States.

An excerpt from Kuo's research note obtained by MacRumors on Monday:

iPhone X would hurt product brand value & lineup of 2H18 new models if it continues to sell at a lower price after 2H18 new models launch: Lowering iPhone X's price after the 2H18 new models launch would be a negative to product brand value given 3D sensing and OLED display are features of the new high-price model. Additionally, to sell iPhone X at a lower price may have a negative impact on shipments of the new 6.1" LCD iPhone in 2H18. Thus, we estimate iPhone X will reach end-of-life (EOL) around the middle of 2018.

If accurate, Apple's smartphone lineup later in 2018 would consist of the second-generation 5.8-inch iPhone X, which will likely remain $999, a larger 6.5-inch version dubbed iPhone X Plus, and the mid-range 6.1-inch iPhone. Below that would likely be iPhone 8, iPhone 7, and iPhone SE models.

Here's how Apple's new iPhone lineup could look:

• iPhone SE: $349
• iPhone 7 and iPhone 7 Plus: $449 and $569
• iPhone 8 and iPhone 8 Plus: $549 and $669
• 6.1-inch iPhone with Face ID: $649 or $749
• 5.8-inch second-generation iPhone X: $999
• 6.5-inch second-generation iPhone X Plus: $1,099

Related Roundup: iPhone XS

Top Rated Comments

(View all)
Avatar
35 months ago
Just don't make me have to get a bigger phone to have the best features.
Score: 84 Votes (Like | Disagree)
Avatar
35 months ago

In other news, Honda will discontinue 2017 Civic when 2018 Civic is released.

Except Apple is still selling an iPhone model from 2015 (iPhone 6s), so your analogy doesn't apply.
Score: 66 Votes (Like | Disagree)
Avatar
35 months ago
In other news, Honda will discontinue 2017 Civic when 2018 Civic is released.
Score: 52 Votes (Like | Disagree)
Avatar
35 months ago

already thinking of X'ing out the X.

"Ten-ning out the Ten"? I don't get it
;)
Score: 38 Votes (Like | Disagree)
Avatar
35 months ago

So the iPhone X plus will cost around $1,200? That'd be ridiculous.

Do you not know how this works by now? In about May, rumors will fly of some kind of iPhone X Magical Mega with a rumored price of (about) $1499... followed by another rumor also suggesting $1499... and then maybe one or two more in the weeks leading up to the big reveal. The rumors get us through the "I will never pay that much" outrage without actually costing Apple any sales, shifting us into nearly acceptance, except maybe still clinging to the idea that we won't pay that much for a phone. Nevertheless, one of our kidneys is probably listed on CL just in case we can't bare to NOT pay whatever the mothership asks for a new phone.

Then Apple takes the stage, reveals the new "it" with a few new features not available on prior phones, some software gee-whiz, maybe some kind of gimmicky feature only the kiddies will love too. Everyone will expect the $1499 price because the rumors have us pretty much there. Then Apple reveals "only $1200" to a big sigh of relief and applause.

Immediately afterwards, cue the gushing at getting all of that for "only $1200" mixed with some, "I was thinking it might even go to $1999 but was fully expecting $1500. I can't believe I can get it for 'only $1200.' What a bargain!" and "Shut up and take my money."

Any remaining price-shocked naysayers should be met with the monthly payment argument: "only $8.33 more per month" (over 24 months) and just the usual beat down if that doesn't shut them down.

Next year: about May rumors imply the next, next "it" at $1999. Repeat sequence of events, concluding with us gushing we're getting that iPhone Xss for "only $1499"... "Shut up and take my money."

In both cases, we're all (self) hyped up such that we drag ourselves out of bed trying to give Apple "only $1200" and then "only $1499" at 3am in the morning. We may be missing a kidney and/or sending BarclayCard Executives to Hawaii again (or maybe they get to finally BUY one of the Hawaiian Islands this time) but WE MUST HAVE THAT NEW IPHONE. MUST, MUST, MUST!

Price-shocked naysayers at $1499 vs. $1200 are met with "only $12.45 more" per month (over 24 months) or "even better!!! only $8.31 more per month on the new (improved?) 36-month plan."

And subsequent to both, Apple reports "best quarter ever" and we write in countless threads "...but who makes the most profitable smart phone" and "$XXX Billion in the bank can't be wrong" as we march towards the time when we find ourselves paying $2499 ("only $8.33 more per month on the new 120-month payment plan") and then $2999 ("only $8.33 more on the new 180-month payment plan") for a smart phone, mostly because Apple wants to beat all prior records, and we'll pretty much pay anything if they apply the same formula to the marketing campaign.

There's lots of ;) in the above, but we know there's also underlying truths in there too.
Score: 31 Votes (Like | Disagree)
Avatar
35 months ago
Apple became so short-sighted now, they only think they could make a huge pile of cash with the X, but didn't think of the aftermath...

If the premium line is at 1300$, i won't buy Apple anymore and i refuse to buy a second class iPhone where every features is just cut by sofwtare and a few hardware miss... i will buy the top android for 800$..

They are greedy ***king shareholders, they really ruin everything
Score: 30 Votes (Like | Disagree)

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