Apple to Axe Current iPhone X After Slow Sales

Monday, 22 Jan, 2018

Apple's flagship iPhone X accounted for 20% of USA iPhone sales in Q4 2017, according to analysis from Consumer Intelligence Research Partners. "At 61%, the three newest iPhone models together represented a somewhat smaller share of total USA iPhone sales in the quarter, compared to 72% for the iPhone 7 and 7 Plus a year ago", said Josh Lowitz, CIRP Partner and Co-Founder. KGI notes that a large number of Chinese users are now adhering to their existing phones for a long time, and specifically the notch on the top of the iPhone X's Super Retina display has turned away some potential customers in the region. Nonetheless, iPhone X sales still matter for Apple as its every single unit generates almost twice the revenue of an iPhone 7, as reported by Reuters late last month.

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. This is lower than the 72% share iPhone 7 and iPhone 7 Plus took in the same quarter a year ago.

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.

The notch is necessary because it contains the Face ID camera which unlocks the device. The 6s Plus, 7 Plus and 8 Plus made up 30% of total sales with an additional 20% buying the iPhone X. This means half of iPhones sold in the quarter had screen sizes larger than 4.7-inches, the largest ever share.

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

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.