2018’s iPhone X refresh could cost less than last year’s model

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iPhone X
$1,000 price point was a sticking point for iPhone X.
Photo: Ste Smith/Cult of Mac

The iPhone X’s $1,000 price point has been hard to swallow for a lot of customers, which may help explain why sales have supposedly been a bit disappointing.

That could change in the near future when Apple launches its 2018-era 5.85-inch OLED iPhone. According to a new report, Apple has managed to reduce its manufacturing bill of materials (MBOM) for this year’s iPhone X-sized handset to a level much lower than that of its present flagship.

The report suggests that Apple’s manufacturing cost for the new iPhone could be more than 10 percent lower than the $400+ dollars it pays for each iPhone X model.

Apple will allegedly launch two new OLED iPhones this year, including a 5.85-inch (the same size as the iPhone X) and 6.45-inch OLED model, as well as a 6.1-inch LCD model. A plan to produce a 5.85-inch LCD iPhone has reportedly been suspended since mid-February, and could be cancelled altogether.

DigiTimes Research suggests that the 5.85-inch OLED iPhone may be the cheapest of the three new iPhone models.

The question with all of this, of course, is how much of a saving in cost will Apple pass on to the consumer. If iPhone sales are starting to slow down, Apple could retain the higher margins with no cost reduction in order to squeeze more profit out of each handset. If, on the other hand, it offers a phone superior to the iPhone X at a lower price point, that could push some of the folks who held out on upgrading last year to do so in 2018.

How much of an impact did the iPhone X’s price tag have on your decision to buy it or not? Let us know in the comments below.