Top Apple analyst is back covering the company, forecasts lower iPhone price tags for this year

Top Apple analyst is back covering the company, forecasts lower iPhone price tags for this year
He's baaaack. At the end of April, Ming-Chi Kuo, one of the most accurate and influential analysts covering Apple for the securities industry, abruptly left the investment firm he had been with for years. And a tweet sent out at that time by Bloomberg's Mark Gurman said that Kuo would be following "innovative non-Apple companies." While some felt that the analyst's quick decision to change his focus had to do with Apple tightening down on leaks (which was discovered, ironically, in an internal memo that leaked), it appears that Kuo might have decided to keep an eye on Apple after all.

Now working as an analyst for Hong Kong's TF International Securities, Kuo is telling clients that Apple will be lowering prices on its next batch of smartphones to be unveiled later this year. Last year, the company released the pricey Apple iPhone X ($999 for 64GB, $1049 for 256GB), and there has been speculation that Apple desires to lower the retail prices of its 2018 iPhone lineup.

For example, Kuo sees the iPhone X sequel, carrying a 5.8-inch OLED screen, to be priced in the range of $800 to $900. The "Plus" version of the phone, carrying a 6.5-inch OLED panel, will cost $900 to $1,000 according to the analyst. And he sees the "low-end" model, with a 6.1-inch LCD display, priced at $600 to $700. Speaking of the 6.1-inch model currently dubbed "iPhone 9," Kuo has said that the device will feature a special layer on its LCD screen. As a result, he sees Apple not including 3D Touch with the unit.

Ming-Chi Kuo says that Apple's decision to lower prices is a result of what he sees as a consumer backlash to higher smartphone prices. In addition, higher yields achieved by suppliers on component production also allow Apple to take a knife to iPhone pricing.

In February 2017, nearly seven months before Apple unveiled its iPhone lineup for that year, Kuo told clients the exact screen-size of each model, including the 5.8-inch iPhone X. He also knew about the "revolutionary" front-facing camera for the tenth anniversary model, correctly calling for it to feature 3D scanning capabilities. At the same time, he stated that Touch ID would not appear on the model, and would be replaced by a face-recognition system. All of those pronouncements proved to be true.

source: AppleInsider

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14 Comments

1. chris2k5

Posts: 289; Member since: Nov 17, 2012

Would be hilarious if Apple trolled this guy and released something different than he predicted. This guy would lose his job and credibility lmao

3. sgodsell

Posts: 7456; Member since: Mar 16, 2013

What really is telling is the lowering prices. If the iPhone X was selling great, then why the need to lower any of the prices at all. Apple is always about money and profits last time I checked.

6. Vokilam

Posts: 1285; Member since: Mar 15, 2018

Dude the lowered prices on iPad - while adding pencil support, and Apple was domination that market. I think Apple likes to choke the competition at this point. Weren’t you the one complaining that iPhone app are too expensive, now you’re the same one bitching that Apple is lowering prices. You’re such a puss. You clearly hate Apple, we already know, why spread the same rhetoric every. Are you worried? It willing only drive android manufacturers even lower. Win for all consumers.

4. Boast_Rider

Posts: 536; Member since: Sep 14, 2017

These guys don't lose their jobs over information they give out. And it's all about being right more than a random guess, not always.

13. ph00ny

Posts: 2055; Member since: May 26, 2011

Im not sure if these are that much of a "random" guess. These guys are probably monitoring every facet of apple production and making an educated guess based on information they're obtaining. Now if phonearena went on said this without any shred of evidence then i would just laugh

14. Boast_Rider

Posts: 536; Member since: Sep 14, 2017

You understood it wrong. I said they need to be better than random guess, not that they are making random guess.

7. Dr.Phil

Posts: 2453; Member since: Feb 14, 2011

He would only lose his job if he predicted something along the lines of guessing the price to be $700 and it turn out to be $1100. They’re not gonna zing him for being off by a hundred or couple hundred dollars. Plus, as with anything, predictions change with more information. So he could easily come out with a new report later this year to correct it.

2. haruken

Posts: 307; Member since: Nov 06, 2013

So the iPhone X was so successful they're lowering the prices this year ? Interesting.

8. Dr.Phil

Posts: 2453; Member since: Feb 14, 2011

I think it honestly has to deal with the Galaxy Note that they would lower prices. This past year since there was only one iPhone X offering they could market it as a premium, but this year there will be two models but you can’t price it to be that much more than the Note series or else people might shop for it over the iPhone Plus for their big screen needs.

11. BLUEBLASTER

Posts: 941; Member since: Feb 23, 2014

I agree but this year I doubt the Note 9 will have much of an impact over the iPhones. The rumours show it won't be much of an upgrade over the S9 +. Samsung will most likely be saving all the good stuff for the S10 next year.

5. Zack_2014

Posts: 677; Member since: Mar 25, 2014

Apple is doomed! Piece of junk with a notch! Haters in 1 2 3...

9. Godlymansean

Posts: 339; Member since: Apr 14, 2017

They will most likely have a less expensive option, not lowering all prices. Should of been apparent with the last iPad release that they would go for a lower priced option.

10. Jrod99

Posts: 765; Member since: Jan 15, 2016

X plus 6.5. Release this Beast already.

12. Rigmaster

Posts: 234; Member since: Jan 22, 2018

The best way to see how firm his position is would be to check how it shapes his firms activity around these predictions. As to the specifics he's predicting, let's hope he's mostly right. Lowered prices on second-gen iPhones would be good news. Lots of complaints about the price of the iPhone X probably wouldn't be as strong had it been intro'd as a 6.5" plus-sized model first.

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