Apple To Discontinue The iPhone X Mid-2018?
This could be the first time Apple has cancelled a phone model since the iPhone 5C in 2014.
By Justin Tan — 23 Jan 2018, 03:28 PM
Apple is set to discontinue the iPhone X this year, according to an analyst
KGI Securities' Kuo Ming-Chi, an analyst dubbed as the best Apple analyst in the world said the move was due to weak demand.
The demand for the iPhone X has been lower than expected, particularly in China
Why has demand weakened for the iPhone X?
Kuo believes one of the reasons for the slower demand is largely due to the notch, which many potential Chinese customers believe removes too much space on the screen. Also, the iPhone X isn’t yet compatible with many popular Chinese apps.
According to the KGI's latest forecast, Apple will ship around 18 million iPhone X units in Q1 2018 and about 13 million in Q2 2018. KGI expects the iPhone X to ‘go to end of life around mid-2018’ which would mean the device would sell around 62 million units in total, significantly lower than its previous forecast of 80 million.
The discontinuation of the iPhone X paves the way for Apple’s upcoming larger-sized phones that are believed to significantly improve competitiveness in the second half of the year, when Apple’s “real super cycle” begins
According to Mashable, Apple’s iPhone X cancellation is in tandem with the upcoming releases of three new edge-to-edge iPhones later this year: a second generation iPhone X, the iPhone X Plus, and a 6.1 inch iPhone that would be cheaper than the other two models.
Additionally, to sell the iPhone X at a lower price may affect sales of Apple's mid-range devices as consumers might then have to choose between buying the iPhone X or the newer iPhone model.
Despite slower demand and possibly the end of iPhone X, Kuo still believes overall iPhone shipments will see a 5-10% growth in 2018
While most analysts expect Apple to see a decline in growth numbers, KGI retains a positive outlook for the iPhone supply chain in the second half of 2018.
So, is the iPhone X cancellation a good thing?
Besides Kuo, Brett Williams from Forbes seems to think so.
"Meanwhile, I’d argue it’s a smart move canceling the iPhone X because its design will remain a flagship option (the 6.1-inch model is priced like the iPhone 8) rather than being discounted at one year old. Consequently, the 2017 iPhone 8 and iPhone 8 Plus will then take the role of cheaper understudies bringing simplification to the range of iPhones."
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