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

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.

Related Roundup: iPhone XS

Top Rated Comments

(View all)
Avatar
24 months ago

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
Score: 41 Votes (Like | Disagree)
Avatar
24 months ago
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.
Score: 33 Votes (Like | Disagree)
Avatar
24 months ago
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?
Score: 26 Votes (Like | Disagree)
Avatar
24 months ago
Of course, they could always take a hit on their own margin.
Score: 23 Votes (Like | Disagree)
Avatar
24 months ago
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...
Score: 19 Votes (Like | Disagree)
Avatar
24 months ago
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
Score: 17 Votes (Like | Disagree)

Top Stories

Apple's First MacBook Pro With a Retina Display Will Become 'Obsolete' in 30 Days

Monday June 1, 2020 7:50 am PDT by
If you are still hanging on to a Mid 2012 model of the 15-inch MacBook Pro with a Retina display, and require a new battery or other repairs, be sure to book an appointment with a service provider as soon as possible. In an internal memo today, obtained by MacRumors, Apple has indicated that this particular MacBook Pro model will be marked as "obsolete" worldwide on June 30, 2020, just over...

Tim Cook Addresses George Floyd's Death and Ensuing Protests and Riots as Apple Temporarily Closes Some U.S. Stores

Sunday May 31, 2020 8:04 pm PDT by
Amid unrest in numerous U.S. cities following last week's killing of George Floyd by police in Minneapolis, Apple CEO Tim Cook has shared an internal memo with employees (via Bloomberg) addressing the pain that many are feeling and urging others to commit "to creating a better, more just world for everyone." Cook also announced that Apple is making donations to several groups challenging...

Apple Releases macOS Catalina 10.15.5 Supplemental Update With Security Fix

Monday June 1, 2020 10:56 am PDT by
Apple today released a supplemental update for macOS Catalina 10.15.5, the fifth update to the macOS Catalina operating system that was released in October 2019. The supplemental update comes a week after the release of the macOS Catalina 10.15.5 update. ‌macOS Catalina‌ 10.15.5 is a free update that can be downloaded from the Mac App Store using the Update feature in the System...

iOS 14 Again Said to Be Compatible With All iPhones Able to Run iOS 13

Monday June 1, 2020 2:08 pm PDT by
iOS 14 will be compatible with all iPhones and iPod touch models able to run iOS 13, according to information shared today by Israeli site The Verifier. The compatibility data was allegedly found in a leaked version of iOS 14 and confirmed by what The Verifier says is a "trusted source from the system development process." iOS 13 is compatible with the iPhone 6s and later, with a full...

Apple Releases iOS and iPadOS 13.5.1 With Fixes for Recent 'unc0ver' Jailbreak Vulnerability

Monday June 1, 2020 9:58 am PDT by
Apple today released iOS and iPadOS 13.5.1, minor updates that come a little over a week after the release of iOS and iPadOS 13.5, major updates that brought the Exposure Notification API, FaceTime changes, mask-related unlocking updates and more. The iOS and iPadOS 13.5.1 updates are available on all eligible devices over-the-air in the Settings app. To access the updates, go to Settings >...

Mockups Depict iPhone 12 Lineup Sizes, Relocated SIM Tray

Monday June 1, 2020 1:22 pm PDT by
A series of 3D printed iPhone 12 mockups designed based on leaked schematics and info from Apple's supply chain was today shared by Japanese site Mac Otakara, giving us a first look at what we can expect from the 2020 iPhone lineup. Rumors have suggested Apple will release four iPhone 12 models in 2020: A 5.4-inch iPhone 12, a 6.1-inch iPhone 12, a 6.1-inch iPhone 12 Pro, and a 6.7-inch...

Five Mac Apps Worth Checking Out - June 2020

Tuesday June 2, 2020 2:25 pm PDT by
Apps developed for the Mac often don't receive as much coverage as apps designed for iPhones and iPads, so we have a series at MacRumors that highlights interesting Mac apps that are worth taking a look at. This month's apps are designed to make working from home a little bit easier. Subscribe to the MacRumors YouTube channel for more videos. Meeter (Free) - Working from home often...

Apple Music Joins Music Industry's Blackout Tuesday Awareness Campaign

Tuesday June 2, 2020 1:31 am PDT by
Apple Music has cancelled its Beats 1 radio schedule for Blackout Tuesday and is suggesting that listeners tune in to a radio stream celebrating the best in black music. Blackout Tuesday is a campaign organized by the music industry to support Black Lives Matter after Minneapolis citizen George Floyd was killed by police in the course of his arrest. On launching Apple Music, many users...

6.1-inch 'iPhone 12' Production to Begin in July Ahead of Other 2020 Models

Monday June 1, 2020 2:36 am PDT by
Volume production of Apple's forthcoming 6.1-inch "iPhone 12" models will start in July-August ahead of the rest of the company's flagship iPhone lineup this year, according to a new report by DigiTimes. Apple is widely rumored to be launching four new ‌iPhone‌ models in the usual September or October timeframe, although supply constraints and delays in production ramp-up could cause a...

Apple Releases tvOS 13.4.6 for Fourth and Fifth-Generation Apple TV Models

Monday June 1, 2020 9:56 am PDT by
Apple today released tvOS 13.4.6, a minor update to the tvOS operating system that runs on the fourth and fifth-generation Apple TV models. tvOS 13.4.6 comes a little over a week after the release of tvOS 13.4.5. tvOS 13.4.6, a free update, can be downloaded over the air through the Settings app on the Apple TV by going to System > Software Update. Apple TV owners who have automatic software ...