Reports indicate that Apple is developing a new iPhone which will be far cheaper compared to the existing options. According to an analyst at KGI Securities, Ming-Chi Kuo, the lower-priced iPhone will come with a liquid crystal display screen measuring 6.1 inches and will sell for $550. Last year the lowest-priced iPhone, the iPhone 8, had a starting price of $699.
Kuo also added in an investor note that the lower-priced iPhone would offer dual-SIM support allowing users to put in two SIM cards in one handset and thus the ability to connect to two different wireless networks. Dual-SIM phones are especially popular with world travelers. According to Kuo the dual-SIM feature could also assist Apple in increasing its Chinese market share.
iPhone X Plus
The report by Kuo has been received with surprise considering that the Cupertino, California-based tech giant has never released a dual-SIM iPhone before. Per Kuo the dual-SIM iPhone will however cost more and the price will range between $650 and $750.This year according to the analyst three new iPhones will be unveiled and this will include the lower-priced model as well as an upgraded iPhone X. The third smartphone from Apple will be the iPhone X Plus.
This comes in the wake of reports that there has been a sharp slowdown at five of the biggest device assemblers of Apple which suggests that demand for the latest iPhones has cooled one quarter after they were unveiled. Pegatron Corp, Hai Precision Industry and other key suppliers of Apple indicated that total sales in the March quarter rose by 8% but the growth slowed later sharply.
Concerns are now rising that despite the fact that there was holiday quarter spike in the sales of the iPhone X, the growth fizzled out rapidly. In emerging markets Apple has struggled to attract customers as rivals such as Xiaomi and Huawei introduce more premium offerings and dominate the company’s largest foreign market, China. Last week estimates of iPhone shipments were cut by six million by Morgan Stanley following a disappointing outlook that was issued by iPhone processor maker, Taiwan Semiconductor Manufacturing.
The sales growth of Apple has a strong correlation with its main suppliers who are heavily dependent on the tech giant for their business growth. According to Mia Huang, a Taipei-based analyst at Trendforce, the production volume of the iPhone X fell significantly in the most recent quarter.
“According to our estimates, iPhone X’s production volume fell by 50% in the first quarter compared to the fourth quarter,” Huang said.