Apple iPhone X 'End Of Life' Predicted, Production Cuts Seen

Apple iPhone X 'End Of Life' Predicted, Production Cuts Seen

Kuo's latest note to clients was seen by MacRumors, which relays some troubling news for Apple's iPhone X. While the analyst had initially believed the iPhone X would enjoy lifetime sales of about 80 million units, he says very weak demand in China will prevent Apple from getting anywhere near that mark.

Apple also reportedly is prepping a 6.5-inch OLED-screen iPhone X Plus, which could be sold at the same price as the current iPhone X, which ranges from $999 to $1,299. The 6.1-inch version will apparently be a more affordable model with a lower-resolution LCD display, while the 6.5-inch iPhone will essentially be the "Plus" version of the 5.8-inch model, and will have an OLED screen.

Right now, the iPhone that received most of the attention is the one that is supposed to continue iPhone X's legacy. Kuo says that iPhone shipments will maintain year over year growth of 0-5% in the first half of 2018, mainly due to Apple's corrected supply chain share. These models are all expected to feature Apple's notched design and TrueDepth camera. The upcoming devices should allow Apple's year-on-year shipments grow worldwide as the iPhone X struggles in China, Kuo said. Touch ID was also removed from the iPhone X, having been replaced by a complex 3D facial recognition solution called Face ID. Later this year, Apple is expected to introduce three new iPhones: a 5.8-inch OLED model, a 6.5-inch OLED model, and a 6.1-inch LCD model.

The iPhone X was billed as Apple's 10th-anniversary handset.

The claim that Apple will stop making the current iPhone X models later this year is intriguing.

However, this is the first time the analyst said the current iPhone X model won't remain in the lineup as a lower-cost option. "We expect iPhone X will go to end of life (EOL) around mid-2018 and that total life cycle shipments will be around 62mn units, lower than our previous forecast of 80mn units". That notion, as well as the iPhone X's high price could be why Chinese customers aren't rushing to get the smartphone. This beats the growth estimates of the smartphone industry, which swing between -5% to +5% shipments. This means that KGI's comments on weaker Q1 iPhone X sales will not be represented in Apple's next earnings results, but may be shown if Apple's guidance for fiscal Q2 is below investor expectations.

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