Apple's 2018 5.85-inch iPhone X model will likely cost cheaper

Todd Singleton
March 23, 2018

It wouldn't surprise me, then, to see Apple carry this pricing strategy over to the new iPhone models, especially since Apple appears to be reshaping its iPhone segmentation strategy to mirror the iPad's. This is the primary reason why many have come to love the tech company's products -to the point of always looking out for news and rumors detailing Apple's newest product offerings.

Citing information from Apple's upstream supply chain, Lin has confirmed that the MBOM of this upcoming Apple device will be more than 10% lower than that of iPhone X which was around US$400 in 2017.

The analyst further believes that owing to the reduction in manufacturing costs, Apple could position the 5.85-inch OLED iPhone as the "cheapest model of all three next-generation iPhone models". Component shortages might not be taking place this time as it did during the iPhone X launch, so Apple will be able to speed up the time it takes for users to enjoy the latest iteration of iPhones.

Apple has slashed the production cost of its new "affordable" 5.85-inch OLED iPhone X, with an initial manufacturing bill of materials (MBOM) significantly lower than its current flagship model.

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New iPads: Supposedly, Apple is working on an updated iPad Pro models which would borrow the Face ID technology that is found on iPhone X. However, it might be possible that these might not hit until later this year if they are at all launched in 2018. The report also claims that the Phone X MBOM was more than $400 past year.

The iPhone X Plus and iPhone X successor will both feature an OLED panel, with the larger model sporting a massive 6.5-inch screen. Apple already started making its own chips, now it's attempting to make displays.

According a report by Digitimes, the 5.8-inch OLED variant of the 2018 iPhone will be cheaper to manufacture. Screen makers like Samsung Electronics Co., Japan Display Inc., Sharp Corp., LG Display Co. and Synaptics Inc. are among those that will be adversely impacted if Apple takes away its business for in-house development. The iPhone-maker now sources OLED panels from Samsung Display for the iPhone X. That iPhone is not the one being mentioned in the report by the analyst since that one is rumored to have a 6.5-inch edge to edge display. That may not seem like a lot, but when you multiply it over the millions of phones that Apple will likely ship in this upcoming fall season, the iPhone 11 cost savings will be significant.

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