KGI re-estimates Q1 iPhone X shipments with a lower number


The reason? "The iPhone X has not been as impactful in China as predicted because of the notch holding the sensors for the device, giving consumers the impression that there is less usable space than on the iPhone 8 Plus". It primarily blames longer replacement cycles in China for the weaker demand for iPhone X. A 6.5-inch OLED and 6.1-inch LCD models are expected to arrive this autumn, which falls in line with the analysts's last-year prediction.

I'm not convinced the iPhone X's days are numbered. Presumably, both the iPhone 8 and iPhone 8 Plus will stick around for at least another generation as not everyone is willing to say goodbye to Touch ID just yet. 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. Reports suggest that Apple is turning to LG Display to produce 15 to 16 million phone screens this year, according to Korean tech news outlet Electronic Times via MacWorld.

What? Ming Chi Kuo expects Apple to cease production of the iPhone X by mid-2018 due to low demand

Previously, Apple has kept the previous years' devices on sale, at reduced prices, when new iPhones come along to replace them. Kuo - who we should note has an exemplary track record with respect to iPhone rumors - adds that Apple may opt to discontinue the current iPhone X entirely if sales are underwhelming.

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.

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Apple should move 62 million units of its most expensive smartphone over its lifetime, down from an earlier estimate of 80 million, Kuo Ming-chi of KGI Securities wrote in a note dated January 18. Apple will still be counting on Samsung to be the main supplier for OLED displays for a newer iPhone model that will have a 5.8-inch display, the same as the iPhone X.

Overall, Kuo predicts iPhone shipments will grow 5-10% in 2018. Given that we might see a drastically new iPhone in the $650 to $750 price range, this would immediately take over sales for the (supposed) discontinuation of the iPhone X.

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