14 DAY TRIAL // Apple is expected to launch three new iPhone models this year, including a successor to the iPhone X that could come with slightly upgraded specs.
And since it’s supposed to replace the existing model, the new 2018 iPhone X was expected to come with a similar price tag, though according to a recent report, it could get substantially cheaper.
While the word cheap does not exist in Apple’s vocabulary, a report from Digitimes indicates that the Cupertino-based tech giant could substantially reduce manufacturing costs of the upcoming device, thus allowing the firm to also cut the final price of the phone.
Digitimes Research senior analyst Luke Lin says the manufacturing bill of materials could be lower than the $400 that Apple has to pay for the iPhone X, and this could translate to a more affordable smartphone should the company not want to increase its profit margin.
Cheaper iPhone
There are two reasons why a cheaper iPhone X could indeed be on the table. First of all, Apple also lowers the research and development costs since technology like Face ID has already been created and installed on the first iPhone X. Face ID proved to be a very complex project that raised particular challenges for both Apple and its suppliers, but after launching the first generation, it should cost less to improve this implementation for an updated version.
And second of all, given that this year’s iPhone X won’t bring substantial hardware upgrades, the cost of raw parts could be reduced substantially as well.
This report does sound good for those planning to upgrade their iPhones in 2018, but it’s worth emphasizing that the cost of materials isn’t the only factor with a direct impact on the final price of a phone. Given the lackluster demand for the iPhone X, however, Apple would really use a more affordable generation that could help create a new supercycle.