A few days after creating a storm of intrigue with his pronouncement that the iPhone X will be cancelled, well-known Apple analyst Ming-Chi Kuo now believes that the smartphone is a “strategic success.” The KGI Securities analyst claimed in an earlier report that the 2017 iPhone X is selling far less than expected and that Apple will likely discontinue its 10th anniversary iPhone as a result.
Kuo stressed that, in the long run, Apple did right with the iPhone X despite the rumored low sales, as reported by Apple Insider.
“We believe the iPhone X has established a long-term edge for Apple,” Kuo said.
The reason why Kuo thinks the iPhone X is still a success is its ground-breaking depth sensing camera system. The tech giant’s Face ID and TrueDepth cameras are miles away from what the competition has right now and by introducing the technology with the iPhone X, Apple will have a huge advantage over its rivals. As a matter of fact, Kuo said in his note to investors that other companies will try to copy their technology starting this year but will be hard-pressed to do so since Apple is two years ahead from the rest of the field with regard to such innovations.
Kuo also said that the $999 price of the iPhone X will “change the mindset on what smartphones should cost,” reports Apple Insider. This will allow Apple more flexibility as it develops its line-up and launches new premium features.
Apple-linked stocks slide on dull iPhone X sales https://t.co/zMr9Ics5Iu
— Nikkei Asian Review (@NAR) January 25, 2018
Kuo also repeated his earlier statement that the iPhone X will be cancelled. To be clear, Kuo indicated that the 2017 iPhone X will be discontinued and that Apple will introduce new models in its stead. These new models will come at the current prices, allowing the tech conglomerate to simply drop the 2017 iPhone X. Kuo also claimed that Apple prefers to discontinue the anniversary iPhone rather than lower its price to accommodate the new models.
A number of online publications, including this article by the Inquisitr, reported on Kuo’s proclamation, leaving people, especially those in the tech industry, at the very least surprised. A few other analysts agreed with Kuo’s claims though there are also reports that the iPhone X is selling well.
JP Morgan analyst Narci Chang and Toni Sacconaghi of Bernstein had the same thoughts as Kuo regarding the future of the iPhone X. Chang said that the production of the iPhone X may be slashed to 50 percent, as CNBC reported. Sacconaghi, meanwhile, said “sequential declines could be in line” for Apple, according to another CNBC report.
There are also reports that companies making components for Apple are experiencing a dip in production because of the iPhone X’s weak performance, as reported by Nikkei Asian Review.
It must be noted that other analysts consider the recent rumor about the iPhone X an exaggeration. According to Daniel Ives of GBH Insights, “the worries around the iPhone X demand have been greatly exaggerated.”
Despite the rumored end of the 2017 iPhone X, Kuo pointed out that it will have served its purpose of paving the way for its successors. Kuo believes that the new iPhones that will supposedly be revealed later this year will make up for the 2017 iPhone X’s shortcomings, particularly in terms of sales.
As earlier reported, Apple is expected to reveal three new iPhone models in the second half of 2018. The three supposedly includes an updated iPhone X, a budget version of the iPhone X, and an iPhone X Plus.