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 Roundup: iPhone XS

Top Rated Comments

MedRed Avatar
41 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
41 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
41 months ago
In other news, Honda will discontinue 2017 Civic when 2018 Civic is released.
Score: 52 Votes (Like | Disagree)
MacDawg Avatar
41 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
41 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
41 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)

Top Stories

microsoft edge ios android

Bill Gates Says His Preference for Android Over iPhone is Due to Pre-Installed Software

Friday February 26, 2021 3:35 am PST by
Microsoft co-founder Bill Gates this week participated in his first meeting on Clubhouse, the increasingly popular invite-only conversation app, where he fielded a range of questions as part of an ongoing book tour. Gates was interviewed by journalist Andrew Ross Sorkin, and given that the Clubhouse app is currently only available on iOS, naturally one of the questions that came up was...
First Look Big Sur Feature2

Apple Releases macOS Big Sur 11.2.2 to Prevent MacBooks From Being Damaged by Third-Party Non-Compliant Docks

Thursday February 25, 2021 10:07 am PST by
Apple today released macOS Big Sur 11.2.2, the fourth update to the macOS Big Sur operating system that launched in November. macOS Big Sur 11.2.2 comes two weeks after the release of macOS Big Sur 11.2.1, a bug fix update. The new ‌‌‌‌macOS Big Sur‌‌‌ 11.2.2‌ update can be downloaded for free on all eligible Macs using the Software Update section of System Preferences....
flat mbp 14 inch feature yellow

Redesigned 14-Inch MacBook Pro Expected to Feature Brighter Mini-LED Display With Slimmer Bezels and More

Thursday February 25, 2021 7:48 am PST by
Apple plans to unveil new 14-inch and 16-inch MacBook Pro models with Mini-LED-backlit displays in the second half of this year, according to industry sources cited by Taiwanese supply chain publication DigiTimes. The report claims that Radiant Opto-Electronics will be the exclusive supplier of the Mini-LED backlight units, while Quanta Computer is said to be tasked with final assembly of the...
jon prosser imac 2021colors

Prosser: 2021 iMac to Come in Five Colors, Apple Silicon Mac Pro to Resemble 'Stacked' Mac Minis

Wednesday February 24, 2021 7:26 am PST by
Hit-and-miss leaker Jon Prosser has today alleged that the upcoming 2021 iMac models will offer five color options, mirroring the colors of the fourth-generation iPad Air, and revealed a number of additional details about the Mac Pro with Apple Silicon. In a new video on YouTube channel FrontPageTech, Prosser explained that the redesigned iMacs will come featuring options for Silver, Space ...
steam apple logo

Valve Ordered to Give Apple Information on 436 Steam Games As Part of Epic Games Legal Case

Thursday February 25, 2021 1:50 am PST by
Valve, the makers behind popular game distribution platform Steam, will be forced to hand over aggregate historical sales, price, and other information on 436 games hosted on the store to Apple, as part of the Apple vs. Epic Games antitrust case. As reported in a paywalled report by Law360, during a virtual discovery hearing on Wednesday, U.S. Magistrate Judge Thomas S. Hixson ordered that...
apple store macarthur center

Apple Store at MacArthur Center in Virginia Permanently Closing Following Years of Safety Issues at Shopping Mall

Thursday February 25, 2021 4:45 pm PST by
Apple today indicated that its retail store at the MacArthur Center shopping mall in Norfolk, Virginia will be permanently closing after over 14 years of business, although an exact closure date has yet to be announced by the company. Apple has assured that it will be offering all employees at the store other positions within Apple, and said that it looks forward to continuing to serve...
m1 mac mini

M1 Mac Users Report Excessive SSD Wear

Tuesday February 23, 2021 7:07 am PST by
Over the past week, some M1 Mac users have been reporting alarming SSD health readings, suggesting that these devices are writing extraordinary amounts of data to their drives (via iMore). Across Twitter and the MacRumors forums, users are reporting that M1 Macs are experiencing extremely high drive writes over a short space of time. In what appear to be the most severe cases, M1 Macs are sai...
apple refurbished m1 mac mini

Apple Begins Selling Refurbished M1 Mac Mini

Thursday February 25, 2021 6:42 pm PST by
Apple today began selling certified refurbished Mac mini models with the M1 chip for the first time in the United States and Canada, with prices discounted by approximately 15 percent compared to brand new models as usual. For example, a refurbished Mac mini with the M1 chip, 256GB of SSD storage, and 16GB of unified memory is available for $759, compared to $899 brand new. Other custom...
qualcomm snapdragon x60 5g

iPhone 13 Lineup Expected to Use Qualcomm's Snapdragon X60 Modem With Several 5G Improvements

Wednesday February 24, 2021 8:10 am PST by
Apple's next-generation iPhone 13 lineup will use Qualcomm's Snapdragon X60 5G modem, with Samsung to handle manufacturing of the chip, according to DigiTimes. Built on a 5nm process, the X60 packs higher power efficiency into a smaller footprint compared to the 7nm-based Snapdragon X55 modem used in iPhone 12 models, which could contribute to longer battery life. With the X60 modem, iPhone...
2021 mbp sd slot feature2

Kuo: New MacBook Pro Models With HDMI Port and SD Card Reader to Launch Later This Year

Monday February 22, 2021 8:52 pm PST by
Apple plans to release two new MacBook Pro models equipped with an HDMI port and SD card reader in the second half of 2021, according to analyst Ming-Chi Kuo, who outlined his expectations in a research note obtained by MacRumors. The return of an SD card reader was first reported by Bloomberg's Mark Gurman last month. "We predict that Apple's two new MacBook Pro models in 2H21 will have...