The iPhone X successor may be priced much cheaper, as Apple cuts costs

The iPhone X successor may be priced much cheaper, as Apple cuts costs
The iPhone X costs about $400 to manufacture as far as its bill of materials (BOM) goes. The parts inside, especially the 5.8" OLED panel by Samsung, and the TrueDepth camera kit that makes Face ID and Animoji possible, are more expensive than what Apple places in phones like the iPhone 8 and 8 Plus, hence the markup to reach the $999 pricing for the X.

The next edition of Apple's first handset with OLED display panel, though, is shaping up to cost much less in terms of parts and assembly costs, as components have fallen in price significantly, reports an analyst, citing supply chain sources out of Taiwan. By now, it is no mystery what Apple's 2018 crop of iPhones may look like - one iPhone X successor with 5.8" OLED display by Samsung, a 6.1" iPhone 9 with LCD screen, and an iPhone Xs Plus, or whatever Apple calls it, with a giant 6.45" OLED screen, supplied most likely by LG.

The funny part in the report that Apple has managed to cut a lot of the production costs for the X, is that it is also probing models with lesser specs than the LCD iPhone 9, indicating that the eventual Xs may be cheaper both than its predecessor, and the 6.1-incher. In fact, the analysts say that it might be the cheapest phone in Apple's upcoming fall crop, though we find this hard to believe, OLED display and all. Still, if Apple releases it with less memory, as tipped, it could rival the starting price of the "cheap" iPhone 9 model with the single camera, which reputed analyst Ming-Chi Kuo expects to cost $700-$800 in the United States. 

Alternatively, Apple may just be playing around with engineering samples, as the report says it has entered an agreement with Samsung for satisfactory OLED display prices, now that the Koreans have overcapacity, and could just be experimenting with the optimal specs-for-price ratio.  In any case, this year the $999 slot may be reserved for Apple's largest model ever, the 6.4" one, while the iPhone X successor, and the LCD iPhone 9, may battle for supremacy below. This will let the average selling price of Apple's handsets stay the same, as users are increasingly showing they can't stomach higher prices, while the fall in parts cost will keep the profit margins in line, too.

source: Digitimes

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)

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41 Comments

1. Clars123

Posts: 1076; Member since: Mar 16, 2015

Or..keep the price the same and make more profit?

2. sgodsell

Posts: 7004; Member since: Mar 16, 2013

No one believes that crap that the BOM is so much more, that Apple has to put it at $1000. Just BS. It's all about profit, and what Apple can squeeze out of its customers wallets.

4. sgodsell

Posts: 7004; Member since: Mar 16, 2013

Apple found out when selling the iPhone X, that it would get some loyal customers willing to layout the money, but once the loyal customers were all gone, the vast majority said no way, and it's not with $1000. Especially for what you are getting, and everyone who has used the X has said that they wish they could get the speed and fast login that TouchID offers. Even the 8's have been free on contract for months now, which Apple raised the price on those as well. What's the excuse for raising the price on the 8's if component prices dropped. Such BS.

5. bucky

Posts: 3774; Member since: Sep 30, 2009

8's free on contract? I wish. Were not talking about 1 month after a Samsung release here.... From my understanding the X has been selling as expected. But i do agree, nobody should be charging $1000 for a phone and i hope both Samsung and Apple fail trying.

9. sissy246

Posts: 7029; Member since: Mar 04, 2015

I am guessing he means the BOGO deals. Buy one get one. I to have never seen a single 8s free on contact.

40. Marcwand3l

Posts: 424; Member since: May 08, 2017

>From my understanding the X has been selling as expected.

21. CreeDiddy

Posts: 2133; Member since: Nov 04, 2011

sgodsell...stop it...the S9 and Note costs nearly $1000 as well. That goes for Samsung as well.

24. yann

Posts: 612; Member since: Jul 15, 2010

Maybe you speak about S9+, which is near 1000, but you get double the RAM and double the ROM than iPhone X. Also bigger display. And fast charger out of the box. At least.

36. fastfreddy123

Posts: 66; Member since: Mar 25, 2017

Uh NO . S9 720.00 Maybe you should check your facts before you look like Howard the duck.

30. techbuttcheex

Posts: 202; Member since: Jul 25, 2015

And it's a shame because they became popular by offering the same device to everyone. Now they want 1% phone.

34. Trex95

Posts: 2364; Member since: Mar 03, 2013

I can get iPhone X 256GB now for 1000$.

3. notfair

Posts: 709; Member since: Jan 30, 2017

If they cut the bom cost is because they want more profit., they will certainly not lower the price for the end user and knowing Apple they will probably lower indeed they bom and increase the end price for the consumer.

6. SIGPRO

Posts: 2813; Member since: Oct 03, 2012

Whahaha apple is feeling the heat! Crappy overpriced phones!

7. c.m.s

Posts: 222; Member since: Dec 10, 2017

I don't believe in this model setup. Why bother with the LCD version at all if it would end up more expensive the smaller X version. My hopes are that they have the successor to the X and the larger OLED version with identical specs except for the the screen size and let the LCD version by the "budget" version. I was really annoyed when Apple gave the Plus version better spec than the normal iPhone, I want the best spec possible but in a small format. So I was very happy to see the relatively small iPhone X was first out with all new design/features. I hope they won't mess that up by giving the larger phones better spec again...

8. youssef44

Posts: 547; Member since: Apr 29, 2014

It should be cheaper because the current iPhone X doesn't worth more than 800 dollars

10. Jrod99

Posts: 707; Member since: Jan 15, 2016

Believe it when I see it. The x plus could take the 1000.00 price point but probably cost more.

11. darkkjedii

Posts: 30880; Member since: Feb 05, 2011

Apple honestly didn't deliver nearly enough in the X, to justify the price tag. I paid $1243 after tax for the 256 gig I returned, it just wasn't good enough feature/software, or hardware wise to cost that much. My Note 8 isn't cheap either, but at just over a grand after tax, It delivers Soooo much more, and makes much more sense economically. Gotta give is more for our money Apple. I feel the iPad Pro is the better device, and worth the money vs the X.

14. c.m.s

Posts: 222; Member since: Dec 10, 2017

You forgot to say "in my opinion"... We all have different priorities and preferences. I don't agree at all with you, I do not see the value in the Note 8. iPhone X running iOS is fits my preferences much better.

17. fyahking

Posts: 1146; Member since: Jan 28, 2015

The x is not in the note 8 league. It has no competition because of the s pen. While your x is like any other phone out there.

20. c.m.s

Posts: 222; Member since: Dec 10, 2017

Your are doing the same mistake as darkkjedii. Alot of people, including me could not care less about a pen for my phone. You have to realize that everyone has their own priorities and preferences.

22. AngelicusMaximus

Posts: 642; Member since: Dec 20, 2017

Why would he say "in my opinion"? This is a public forum. Aren't we all here to give our opinions? He's clearly not giving someone else's. Also, we all know that if his opinion was the same as yours, you wouldn't have made your comment at all.

25. darkkjedii

Posts: 30880; Member since: Feb 05, 2011

Well said.

26. darkkjedii

Posts: 30880; Member since: Feb 05, 2011

I don't have to say "in my opinion". It's the comments section, it's full of opinions. I do however, have hands on experience with the X, to post my opinion about it accurately. It's not worth the money...not even close.

27. c.m.s

Posts: 222; Member since: Dec 10, 2017

Thats the thing. You always mention your returned iPhone X and make it sound like it’s a fact that Note 8 is better. It’s great that you like it but it’s definitly not a fact that it is better. Hardwarewise it’s not worth its price any more than an iPhone X and software/feature set is just about preferences.

37. fastfreddy123

Posts: 66; Member since: Mar 25, 2017

Since the Iphone X is underselling you're opinion is in the minority. So Decry morehttps://www.forbes.com/sites/ewanspence/2018/03/05/apple-iphonex-iphone-sales-supercycle-failure/#1f3b14377403

38. c.m.s

Posts: 222; Member since: Dec 10, 2017

Eh, you are aware Note 8 sells in a ALOT less numbers than iPhone X, right? So going by numbers i'm far from a minority.

12. cncrim

Posts: 1583; Member since: Aug 15, 2011

It is good to see Apple perform under pressure, gimmicky feature no longer work.

13. Humanoid

Posts: 1226; Member since: Dec 11, 2017

Easy... Sign a deal with a company that uses inkjet to produce oled instead of those that use evaporation. Inkjet process is faster, cheaper and also wastes less material.

15. Zylam

Posts: 1810; Member since: Oct 20, 2010

Cannot wait for the X successor. Everyone knew the larger model was going to start at 999 with the smaller one (the one I want) being priced lower. Oh man I can't wait for November to come for the new Pixels and iPhones. All Apple and Google have to do is release awesome mini tablets now and I'm done! Also yea fandroids I cannot wait to get an iPhone, oh what you gonna cry about it.. LMAOOO come at me with those tears.

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