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.

iphone x silver
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 Forum: iPhone

Top Rated Comments

MedRed Avatar
66 months ago
Just don't make me have to get a bigger phone to have the best features.
Score: 84 Votes (Like | Disagree)
BootsWalking Avatar
66 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)
az431 Avatar
66 months ago
In other news, Honda will discontinue 2017 Civic when 2018 Civic is released.
Score: 52 Votes (Like | Disagree)
MacDawg Avatar
66 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)
HobeSoundDarryl Avatar
66 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)
kevinbeared Avatar
66 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)

Popular Stories

Apple Silicon Teal Feature

The Next Big Apple Silicon Device May Not Be a Mac or iPad

Wednesday February 1, 2023 3:57 am PST by
Apple's next device with an Apple silicon chip may not be a Mac or an iPad, but rather an advanced external display, according to recent reports. The display, which is rumored to arrive this year, is expected to sit somewhere between the $1,599 Studio Display and the $4,999 Pro Display XDR – but more exact information about the device's positioning and price point is as yet unknown. While ...
General iOS 16 Feature Yellow

Five New iOS Features Coming to Your iPhone Later This Year

Tuesday January 31, 2023 11:58 am PST by
Apple has previously announced several upcoming iOS features that are expected to be added to the iPhone this year. Some of the features could be introduced with iOS 16.4, which should enter beta testing soon, while others will arrive later in the year. Below, we have recapped five new iOS features that are expected to launch in 2023, such as an Apple Pay Later financing option for purchases ...
HomePod 2 White and Midnight Feature Purple Blue

Apple Explains Why HomePod Was Released Again, Wi-Fi 4 Limitation, and More

Thursday February 2, 2023 7:57 am PST by
Apple's VP of hardware engineering Matthew Costello and product marketing employee Alice Chan recently spoke with Men's Journal and TechCrunch about the new second-generation HomePod in wide-ranging interviews about the smart speaker. Apple discontinued the original full-size HomePod in March 2021 after multiple reports indicated that sales of the speaker were lackluster, but Chan told Men's ...
iOS 16

Apple Preparing iOS 16.3.1 Update for iPhone as Wait for iOS 16.4 Beta Continues

Thursday February 2, 2023 6:41 am PST by
Apple appears to be preparing an iOS 16.3.1 update for the iPhone, based on evidence of the software in our website's analytics logs this week. It's unclear when the update will be released, but it will likely be available at some point in February. The same logs have accurately foreshadowed the release of several previous updates, including iOS 16.0.3 and iOS 16.1.1 most recently, so they...
dewey airtag

Report Highlights Danger of Using AirTags for Tracking Dogs

Monday January 30, 2023 1:45 pm PST by
AirTags may be a convenient way for tracking dogs that might get off leash or otherwise lost, but there are dangers associated with the practice, as outlined by a report from The Wall Street Journal. At 1.26 inches in diameter, AirTags are able to fit easily on a dog's collar, but that size also makes the tracking devices small enough to swallow, at least for a medium to large-sized dog, and ...
MKBHD HomePod 2 White Ring Stain

New HomePod Can Still Stain Some Wooden Surfaces

Tuesday January 31, 2023 8:29 am PST by
When the original HomePod launched in 2018, it was discovered that the speaker can leave white rings on some wooden surfaces. Now, well-known YouTuber Marques Brownlee has confirmed that the issue persists to a lesser extent with the new HomePod. In a side-by-side test, he showed that the white second-generation HomePod left a white ring on the wooden surface that he placed the speaker on,...
Multi Display CarPlay 1

Apple Launching All-New CarPlay Experience Later This Year With These 5 Features

Sunday January 29, 2023 10:15 am PST by
In June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple says the first vehicles with support for the next-generation CarPlay experience will be announced in late 2023, with committed automakers including Acura, Audi,...
iOS 16

When Will the iOS 16.4 Beta Be Released?

Wednesday February 1, 2023 11:09 am PST by
It's been more than a week since Apple released the iOS 16.3 update, and typically, new iOS betas follow launches within a day or so. We were expecting Apple to provide the first beta iOS 16.4 on Monday, Tuesday or Wednesday of this week, but that hasn't happened. Tuesdays are the days that we most often see betas, though Monday and Wednesday happen now and then, and most often betas come...