How Apple iPhone X Disappointing Sales Affect Successor

Apple is expected to update its iPhone lineup from last year this coming fall. However, the Cupertino giant has reportedly decided to lower the initial number of units of the iPhone X’s successor.

DigiTimes Research analyst Luke Lin said Wednesday that Apple has reduced the initial manufacturing bill of materials for this year’s 5.85-inch OLED iPhone, which is believed to be the direct successor to the iPhone X. A bill of material is a list of raw materials or components needed to manufacture a product.

If Lin’s report is to be believed, it is to be expected that the initial batch of iPhone 11 units would be lower than last year’s iPhone X. Lin learned from Apple’s upstream supply chain that the bill of materials for the upcoming flagship device is 10 percent lower than the one for the present flagship phone.

What’s quite interesting about Lin’s report is it claims that the 5.85-inch OLED iPhone could be the cheapest model of the next-generation iPhones due to a cost reduction. The analyst also stated that Apple has already determined the direction for its 2018 lineup of iOS handsets.

It should be noted that Lin’s reports contradict KGI Securities analyst Ming-Chi Kuo’s predictions for the 2018 iPhones. Kuo, who is known for accurately leaking information about upcoming Apple products, has previously claimed that Apple is going to release two OLED models and one LCD model this year. Lin contradicted this in January by publishing a report that says Apple is preparing two LCD models and one OLED model.

Bloomberg also reported last month that Apple is working on a more-affordable iPhone entry this year. The device is said to be the one that’s sporting an LCD screen. To keep the cost of this variant down, Apple reportedly decided to use aluminum edges and glass back panels instead of the stainless steel body the company used in making the iPhone X.

Meanwhile, Apple recently reached an agreement with Samsung Display — one that secures satisfactory terms which will prevent cost increases for the panels the South Korean company is supplying the Cupertino giant. There’s also a rumor claiming that the 5.85-inch model will come with lower-level specifications and lower capacities. These are the reasons why Lin believes that the 5.85-inch OLED model could have the cheapest price tag among the three.

Apple hasn’t confirmed the new report, which is very typical of Tim Cook’s company. The tech giant is not one to comment on speculative reports and rumors about its new products. Hence, it’s best to take this new information with a grain of salt.