14 DAY TRIAL // Apple might be planning to discontinue the iPhone X this year, according to one analyst, as sales of the model have so far been well below expectations especially because of the high price.
As a result, what Apple might be planning to do is retire the current model and rely exclusively on the 2018 iPhone lineup that would include a successor to the existing iPhone X, but with a smaller price tag.
Neil Campling, a Mirabaud Securities analyst, says the lower revenue target announced by TSMC (Taiwan Semiconductor Manufacturing), which is currently the number one semiconductor foundry company and a top Apple supplier, is living proof that Apple has substantially reduced orders, causing problems to all its partners.
Campling says these problems could lead to issues affecting other companies, including AMS, which supplies 3D sensing modules for the iPhone X.
$500 iPhone coming this year
TSMC is currently struggling with high inventory levels given Apple’s decreased orders, and AMS is facing similar challenges. This could be a sign that Apple is planning to kill off the iPhone X, the analyst says, adding that the main reason the device isn’t selling is its high price.
“With the declines in iPhone X orders and the inventory issue at TSMC at record highs, which basically reflect a need to burn off inventory. Why? Because the iPhone X is dead,” he was quoted as saying by CNBC. “The simple problem with X is that it is too expensive. Consumers are turning their backs on high-priced smartphones.”
Campling also reiterates previous analyst forecasts that Apple might be aiming for a $500 iPhone this year and features like dual-SIM in order to tackle markets like those in China.
For the time being, however, Apple has remained completely tight-lipped on its future iPhone plans, and analyst notes like this one should undoubtedly be treated with a healthy dose of skepticism.