Rumor: Apple supply chain looking to cut iPhone X costs in 2018, reducing consumer prices

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A new report from the Chinese supply chain suggests that Apple has been developing the 2018 model-year iPhones to include many if not all of the iPhone X technologies, in new models said to be codenamed "Lisbon" and "Hangzhou."




A report from the Chinese-language Economic Daily published on Thursday cites unnamed sources within the supply chain for the codenames, and Apple's intent. The primary driver for the migration to less expensive phones is said to be price sensitivity in the Chinese market -- but presumably the migration would assist sales figures elsewhere as well.

Should the "Lisbon" and "Hangzhou" code names be accurate, they would be the first city name-based ones for the iPhone. The iPhone 8 was said to be called Ferrari, but most iPhones have alphanumeric code names like D22 for the iPhone X -- and D20 for the iPhone 8.

Japanese site Macotakara believes that a 10,000 yen price decrease ($90) is possible with the new model -- generally consistent with year-over-year model refreshes. Not discussed in either report is the fate of the iPhone X itself if the technologies are migrated to the lower-end models.

This is the first year that Apple has introduced two families of phone during the same event. While there is a main difference between the iPhone 8 and the iPhone X in the camera systems, the iPhone X has a much larger evolutionary gap with the Super Retina OLED screen and the Face ID system supplanting Touch ID.

Apple's iPhone X starts at $999 with 64GB of storage. Peorders begin on Oct. 27 with the first shipments arriving on Nov. 3.

Comments

  • Reply 1 of 7
    foggyhillfoggyhill Posts: 4,767member
    Well, big duh,are these even stories. Doesn't seem like it to me. Just normal engineering and the end point of manufacturing rampup.
    SolicaliRacerhomieXdoozydozenwatto_cobra
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  • Reply 2 of 7
    Solisoli Posts: 10,038member
    foggyhill said:
    Well, big duh,are these even stories. Doesn't seem like it to me. Just normal engineering and the end point of manufacturing rampup.
    We don't even need iinside knowledge that this "rumor" of wanting to cut supply chain costs is a fact.
    edited October 2017
    watto_cobra
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  • Reply 3 of 7
    MacPromacpro Posts: 19,873member
    Anal-ysts will be so confused poor things.. do they lower AAPL forecasts on lower profits or raise them as sales could be higher?  /not being serious ...
    watto_cobra
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  • Reply 4 of 7
    calicali Posts: 3,494member
    So 2017’s iPhone X will be cheaper next year?
    Apple does this every year...
    Am I reading this wrong?

    When the devices get cheaper the price goes down and Apple adds features to it for
    the next model to sell at a higher again.
    watto_cobra
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  • Reply 5 of 7
    Solisoli Posts: 10,038member
    cali said:
    So 2017’s iPhone X will be cheaper next year?
    Apple does this every year...
    Am I reading this wrong?

    When the devices get cheaper the price goes down and Apple adds features to it for
    the next model to sell at a higher again.
    I think it has more to do with Apple trying to reduce supply chain costs so that the base price for each capacity tier can be reduced with the new model, likely trying to bring it inline with what the iPhone 8 is priced at right now. At least, that's how I'm reading it.
    edited October 2017
    jcs2305doozydozenradarthekat
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  • Reply 6 of 7
    negociarlawnegociarlaw Posts: 42member
    I think this is a very interesting story because you can really see the evolving nature of Apple, phones, prices, and, in a way, people's responses to what is really important to everyone and what will be the future of the ways we communicate via bionic phones. 

    Will we all have neural engine phones capable of augmenting our reality; or some phones like the SE that are capable
    but clearly less than; or will all of Apple 
    move upmarket and Samsung will take care of the low-end.

    Apple likely will move up-shelf with everything. Actually, I am surprised they have all these phones that they sell. It's confusing for people and it confuses the brand as well, especially with the likes of Mr 10 OLED. 

    Really, i think in the US, over the next few cycles, this company will offer less options but all being in upper price ranges. 

    Like I said in a previous post, it will be interesting to see the future of these phones and there different offerings.
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  • Reply 7 of 7
    curtis hannahcurtis hannah Posts: 1,834member
    Sounds like Apple doesn't want to keep the iPhone X $1000, which is no surprise, I doubt that the iPhone 5 line(5,5S,SE), iPhone 6 line(6(+),6S(+),7(+),8(+), and iPhone X lines are long term plans, I imagine they will have two iPhone lines again sooner or later with likely the 6line gone with a smaller X taking the price at some point.
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