Apple may suddenly cancel the iPhone X this summer

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  • In a new report, an analyst says  production could stop as soon as this summer
  • This could be the first time Apple has cancelled a phone since the iPhone 5C
  • Experts believe the lack of interest in the phone is largely due to the notch
  • Many Chinese customers believe it removes too much space on the screen

Phoebe Weston For Mailonline

The latest Apple leak has revealed the firm could cancel the iPhone X.

In a new report, an analyst says the new model’s disappointing sales could lead to the phone being cancelled – with production stopping as soon as this summer.

This could be the first time Apple has cancelled a phone model since the iPhone 5C in 2014.

Experts believe the lack of interest in the phone is largely due to the notch, which many potential Chinese customers believe removes too much space on the screen.  

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The latest Apple leak has revealed the firm could cancel the iPhone X (pictured). In a new report, an analyst says the new model's disappointing sales could lead to the phone being cancelled - with production stopping as soon as this summer

The latest Apple leak has revealed the firm could cancel the iPhone X (pictured). In a new report, an analyst says the new model’s disappointing sales could lead to the phone being cancelled – with production stopping as soon as this summer

IPHONE X SALES

Experts say the high price of the iPhone X – Apple’s most expensive handset yet – and its ‘lack of interesting innovations’ could deter many buyers.

According to Sinolink Securities analyst Zhang Bin, shipments could be as low as 35 million in the first quarter of this year – roughly 10 million less than previously estimated. 

Some analysts have also flagged disappointing demand.

US-based JL Warren Capital is predicting shipments of just 25 million units.

Chinese broker Sinolink Securities said it expects the model’s price would dampen consumer enthusiasm for the product, adding that slow production rates could also hinder sales. 

Apple plans to ship around 18 million of the iPhone X in the first quarter of 2018, according to Apple KGI security analyst Ming-Chi Kuo.

He predicts the iPhone X could be ‘end of life’ as soon as this summer, rather than being kept on as a cheaper option for the following year.

According to the report seen by Apple Insider, Chinese interest in the phone has been lower as consumers believe there is less usable space than on the iPhone 8 Plus.  

The notch contains the 3D scanning sensors and cameras that power Face ID, but cuts into the top of the display. 

Mr Kuo believes an ‘iPhone X Plus’ model will debut instead of the current model that will mitigate concerns about unusable screen area.

The iPhone 6 and 7 have been more popular than expected meaning the firm remains ‘positive on Apple [and] the iPhone supply chain’, the report said.

Mr Kuo also believes there will be a modest 5 per cent growth in overall sales during the first half of 2018.

Experts say the high price of the iPhone X – Apple’s most expensive handset yet – and its ‘lack of interesting innovations’ could deter many buyers.

According to Sinolink Securities analyst Zhang Bin, shipments could be as low as 35 million in the first quarter of this year – roughly 10 million less than previously estimated

During a trip to China last month Apple CEO Tim Cook (pictured) said he 'couldn't be happier' with the demand for the iPhone X in the country

During a trip to China last month Apple CEO Tim Cook (pictured) said he 'couldn't be happier' with the demand for the iPhone X in the country

During a trip to China last month Apple CEO Tim Cook (pictured) said he ‘couldn’t be happier’ with the demand for the iPhone X in the country

iPHONE X COSTS JUST $357.50 TO MAKE 

Apple new flagship iPhone X makes the company more money per phone than its iPhone 8 model, according to an analysis.

A report from TechInsights found the iPhone X’s flashier parts cost Apple 25 percent more than the iPhone 8, but that it retailed 43 percent higher.

The iPhone X smartphone costs $357.50 to make and sells for $999, giving it a gross margin of 64 percent, according to the firm, which tears down technology devices and analyzes the parts inside.

The analysis found:

  • The 5.8-inch (14.8 cm) edge-to-edge display and associated parts cost $65.50, compared with $36 for the iPhone 8’s 4.7-inch display, the analysis found.
  • Stainless steel chassis of the iPhone X, which cost $36 versus $21.50 for the aluminium housing of the iPhone 8. 

Some analysts have also flagged disappointing demand.

US-based JL Warren Capital is predicting shipments of just 25 million units.

Chinese broker Sinolink Securities said it expects the model’s price would dampen consumer enthusiasm for the product, adding that slow production rates could also hinder sales.

During a trip to China last month Apple CEO Tim Cook said he ‘couldn’t be happier’ with the demand for the iPhone X in the country.

Apple suppliers that were most hit included Genius Electronic Optical which dropped 2.4 per cent on Tuesday to take its losses this week to 11.4 per cent.

There were only 4.97 million Weibo posts mentioning the iPhone X so far in December compared to over 11 million for the iPhone 6 in the equivalent period in 2014, the analysis showed.

 





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