iPhone X Canceled? Apple Could Discontinue Latest iPhone If Device Underperforms

An analyst is predicting that if Apple experiences less demand for its iPhone X than it originally expected, the device will be dropped from the company’s product line and will enter an “end of life” cycle later this year, according to a report from Apple Insider.

The prediction comes a research note produced by Apple analyst Ming-Chi Kuo at KGI securities. According to the analysis, the iPhone X hasn’t lived up to expectations set by Apple, especially in the Chinese market.

KGI’s analyst reportedly believes Apple will ship about 18 million unit of its iPhone X during the first quarter of 2018, which would apparently represent a letdown for the company that postured the device as its premium offering.

Earlier this month, a number of Wall Street firms also issued corrections for predictions of expectations of iPhone X sales during 2018, with most adjusting the figures downward.

JL Warren Capital forecasted Apple will ship 25 million iPhone X units in the first quarter of 2018, while Loop Capital predicted between 40 to 45 million—both of which are lower than the original forecasts set for the device, which expected closer to 50 million units to be moved during the first quarter of the new year.

The analyst noted that if Apple fails to generate the interest it expected for the iPhone X, it may opt to simply cancel production of the device when it announces its new line of phones in the fall of 2018. Typically, Apple would continue to offer the phone at a discounted price.

“iPhone X would hurt product brand value and lineup of...new models if it continues to sell at a lower price after...new models launch,” the research note from Kuo said, according to MacRumors . Kuo suggested that lowering the price of the original iPhone X after Apple launches its new models in 2018 “would be a negative to product brand value given 3D sensing and OLED display are features of the new high-price model.”

While the lower price for the iPhone X may generate more consumer interest in the device, it would also eat into the share of people who would purchase the new model of iPhone. Because of that, Kuo predicted Apple will place the iPhone X into an end-of-life cycle in the summer of 2018, stopping production on the device and removing it from its lineup.

If the prediction from Kuo comes true, it would represent the first time that Apple has forgone retaining its high-end device and offering it at a reduced price as a lower-cost option in its lineup.

Instead, Kuo predicts apple will integrate some of the features from the pricey device into its other models of smartphones. The analyst also believes Apple will introduce a second generation of the iPhone X and a new version called the iPhone X Plus that will offer a larger screen predicted to be 6.5 inches.