Apple to keep premium iPhone X pricing in 2018, Face ID is 2 years ahead of competition

Apple to keep premium iPhone X pricing in 2018, Face ID is 2 years ahead of competition
The iPhone X is a 'strategic success' for Apple as the device has established a new premium price point for phones and is two years ahead of the competition with its 3D sensing camera technology, according to KGI Securities analyst Ming-Chi Kuo, a person with extensive knowledge of the Apple supply chain.

"We believe the iPhone X has established a long-term edge for Apple," Kuo said, mentioning that he expects to see many rivals try to copy the advanced Face ID technology in 2018.

The $1,000 price for the iPhone X is another important psychological barrier that Apple has broken and is a key factor to the company's success in the long term. The analyst believes that the premium model pricing will help Apple weather "short-falls" in sales numbers.


To maintain its premium pricing, Apple will discontinue the first generation of the iPhone X and replace it with the second-generation model. Traditionally, Apple drops the price of 1-year-old models by $100 and keeps on selling them along with newer devices, but this will not be the path it follows with the premium iPhone X.

Kuo also reiterates his estimate of lower-than-expected initial iPhone X sales. The analyst recently revised his estimate about iPhone X shipments in Q1 down from 20-30 million to just 18 million. According to the analyst, Chinese users in particular are not buying as many iPhone X as expected. The country is known for users' preferences for larger screens, but many Chinese apps are not yet compatible with the notched design and users see the 5.5-inch iPhone 8 Plus as offering more screen real estate (this is indeed true). Still, the analyst expects a "super-cycle" to occur later this year and help off-set this initial decline in sales.


Along with the second-generation iPhone X, Apple is also rumored to introduce a new, premium-priced iPhone X "Plus" model with a 6.5-inch edge-to-edge OLED display with a notch.

The company is also working on a new, 6.1-inch new iPhone that will also ditch the home button in favor of Face ID. That model will be more affordable and will have an LCD screen, but it will not have an edge-to-edge design.

Earlier in 2018, Apple is expected to unveil a new iPhone SE. The device will cement itself as the entry-level iPhone that will give users the iOS experience, but it will not have any of the advanced technologies that Apple has introduced with premium models.


source: KGI Securities via MacRumorsAppleInsider

Related phones

iPhone X
  • Display 5.8" 1125 x 2436 pixels
  • Camera 12 MP / 7 MP front
  • Processor Apple A11 Bionic, Hexa-core, 2390 MHz
  • Storage 256 GB
  • Battery 2716 mAh(21h 3G talk time)

FEATURED VIDEO

69 Comments

1. cmdacos

Posts: 4200; Member since: Nov 01, 2016

True depth camera may be 2 years ahead of the competition but the insecure mess that is face id certainly is not.

13. sgodsell

Posts: 7365; Member since: Mar 16, 2013

I don't think it's 2 years ahead of the competition. The competition also gives you multiple options like tried and trusted finger print scanner as as well as Facial recognition, and some give you Iris scanning as well. Not to mention Android also gives you something called smart Lock. Which gives it's Android users the ability to use a trusted Bluetooth device including a smart watch like Android Wear the ability to unlock your smartphone. Android smartphones give you multiple options to unlock your Android smartphone. Apples iPhone X gives you ONE option, and only ONE option. Sure their is pin unlock, but let's get real, that is not a fast option. Besides that Android has that option and password as well.

17. sgodsell

Posts: 7365; Member since: Mar 16, 2013

Not to mention CES showed off a few smartphones with finger print scanners under the screen. I rather have that any day of the week than using my Face to unlock it.

22. lyndon420

Posts: 6789; Member since: Jul 11, 2012

I wish it was 20 years ahead of the competition...I don't want that face scanning crap tech on my phone.

25. makatijules

Posts: 835; Member since: Dec 11, 2017

It's not 2 years ahead, unless they are gonna prevent the competition from buying it like they did the FPS. We aren't missing anything. Iris Unlock on the Galaxy is far more secure as zero out of 7Billion can unlock your device. When Steve Jobs first announced the iPhone, he claimed it was 5 years ahead of every one else. 18 months later stiff competiton was already knocking. In 2010 HTC blew Apple in sales for 3 of 4 quarters and then the S came which its first years sales burned the 2 prior years of iPhone sales combined. Apple hasn't done anything with the text we aren't doing without it. Device unlock and mobile payments have been tied to Samsung's Iris Scanner for 2 phone models already. The FPS is still faster and I enjoy having choices at a lower price point.

2. drunkenjay

Posts: 1670; Member since: Feb 11, 2013

of course it's 2 years ahead, so ahead that it works 50% of the time.

4. whatev

Posts: 2260; Member since: Oct 28, 2015

Do you have an iPhone X so you can make that statement?

5. drunkenjay

Posts: 1670; Member since: Feb 11, 2013

i actually do. check my current phone on my profile.

6. adecvat

Posts: 640; Member since: Nov 15, 2013

My X works perfect. Always unlocking pretty fast.

28. darkkjedii

Posts: 31034; Member since: Feb 05, 2011

I just sold mine, and it worked about 70% of the first time attempts. It was also a very boring phone...whatev(errrrrrrr)

12. whatev

Posts: 2260; Member since: Oct 28, 2015

Anyone can add the phone they want on that profile section, it’s really difficult to trust trolls

29. drunkenjay

Posts: 1670; Member since: Feb 11, 2013

yes. and i added every other phone i had right? just because i don't like some aspects of the phone, doesn't mean I don't own it. Face id is okay but altogether i hate face unlock altogether. touch id is the way to go not some crap face unlock where you have to look at the phone at a certain distance to unlock.

26. NickHill

Posts: 388; Member since: May 07, 2016

You definitely don't own one. Mine works fine.

42. roscuthiii

Posts: 2383; Member since: Jul 18, 2010

Yeah but you're a moot point. Apple could add a flash stobe on the iPhone with a bug that makes you have a seizure and s**t your pants, and you'd still applaud them for the feature.

3. Arashmahmoodi25

Posts: 132; Member since: Apr 07, 2017

I don't think companies are interested in copying Face ID technology for their upcoming phones.

7. adecvat

Posts: 640; Member since: Nov 15, 2013

Just because they can't. Technological lagging.

11. Cicero

Posts: 1129; Member since: Jan 22, 2014

Technological lagging? So wrong you are. See 2018 new releases in camera dept. and neural intelligence soc.

15. sgodsell

Posts: 7365; Member since: Mar 16, 2013

So FaceID is so good that Apple removes TouchID altogether, or Apple removes TouchID because they couldn't put it under the display, or didn't want to put TouchID on the back of the iPhone X? I will get you money that Apple will put a finger print scanner under the screen. Why? Because the competition will have that option as well as Facial recognition, or Iris scanning. Not to mention the competition already has multiple options. The competition doesn't force it's users to use one option like Apples iPhone X. What happened to function over form?

44. adecvat

Posts: 640; Member since: Nov 15, 2013

Competition has useless faceless or iris scanning, not working well and users always switch off this gimmicks. Face ID works so fast so you don't need to use your finger anymore.

51. sgodsell

Posts: 7365; Member since: Mar 16, 2013

So Apple forcing you in one direction is okay for you, right adecvat? Well it's not okay for me. Options are always better. Btw FaceID does not work as fast or as reliable as a finger print scanner. Others have problem that. Maybe you should look at what some other YouTubers have said about FaceID. At the end of the day if you want an iPhone X, your only option is FaceID and that is it, period. The competition is going to have devices with finger print scanners embedded under the screens. It's hidden and out of the way. So that could be an option that could be easily added to any smartphone. If Apple doesn't do that, then Apple is stupid.

53. Cicero

Posts: 1129; Member since: Jan 22, 2014

I can unlock my phone backwards with fp. Can you?

60. domfonusr

Posts: 1084; Member since: Jan 17, 2014

Well, we all know what happened to function over form at Apple: its actually form over function there. And there are a solid group of people who prefer that stance... I mean, it is tempting. If it didn't cost so much more than a cheap Android phone, I'd have had the iPhone SE by now. My LG Fortune that I just got this past weekend cost only a quarter of what the iPhone SE 32GB cost, both from the same carrier (Cricket). $39.99 vs $159.99. Both will do what I need them to do, though the SE would've really done it in style... but I don't have the money for style, so I go with the basic needs these days, and I'll be fine with that.

8. DRS1977

Posts: 679; Member since: May 27, 2015

They don't want to copy a failure called Face ID.

27. makatijules

Posts: 835; Member since: Dec 11, 2017

It a cool tech that offers nothing we couldn't do already. I think Apple rushed to have it first and the tech was not mature enough yet. The fact it can unlock with as plain as day faces shows it wasn't ready. So much for the claim Apple only introduces stuff when it's perfect. Until someone ones up with a way to make it secure enough, it's not worth copying. It's not doing anything we can't do by other means.

9. Cicero

Posts: 1129; Member since: Jan 22, 2014

Oh ... tech analysts. They are like economic analysts. All they predicted never happened. All the time they get wrong.

10. Cat97

Posts: 1892; Member since: Mar 02, 2017

A side-mounted figerprint sensor would be 10 times better than the Fake ID, and could be implemented quite easy.

21. Ciro1900

Posts: 591; Member since: Dec 17, 2017

the next iphone 9 and 9 plus will surely have a scanner on the screen http://www.xperiablog.net/2018/01/23/jdi-develops-glass-based-fingerprint-sensor-shipments-start-this-year/ It can be to Sony or apple

14. worldpeace

Posts: 3133; Member since: Apr 15, 2016

It's more because Android manufacturers don't want to waste their resource to something that's slower, less accurate, and more annoying to use than FPscanner.. But I guess some manufacturers will add it anyway (Huawei, LG, or Samsung), just to show that they can make it too

16. sgodsell

Posts: 7365; Member since: Mar 16, 2013

The thing is right now the S8 and Note 8 give you multiple options. Not just one option like the iPhone X. The currently have Facial recognition, Iris scanning, finger print scanning. Smart Lock which is an Android 5 option that gives you multiple options to gives it's users to keep it's users logging in, like trusted faces, trusted devices like using smart watches, and other options. Besides that there will be other options coming this year. Like embedded finger print scanner so under the screen.

23. midan

Posts: 2871; Member since: Oct 09, 2017

You need to give multiple options if all of them are quite crappy. Apple can have only face ID because it covers all the scenarios and can be used with payments etc.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.