Even if iPhone X is discontinued, it's good for Apple
On September 13, 2017, when Apple announced the "futuristic" iPhone X at the brand new Steve Jobs Theatre, it did so with the knowledge that the new device could reinvigorate its fortunes. With the new device created to celebrate the tenth anniversary of the launch of the first iPhone, the tech giant effectively placed its bets in one basket by announcing that the device will launch at a higher price and a date later than iPhone 8 and 8 Plus.
The $999 entry price and the November 3 launch date were indeed massive votes of confidence for a phone that had reportedly been in the works for several years now. But as it turns out, less than four months from that day, the smartphone maker's confidence seems to be running out, as reports have emerged that the device could be taken off the production belt – and eventually off shelves – even before celebrating its first birthday in the wild.
According to an Apple Insider report, trusted Apple analyst Ming-Chi Kuo of KGI Securities has predicted that Apple will soon discontinue the iPhone X if it believes the device isn’t taking off the way Apple wants it to in markets like China.
Though it may be too early to speculate, but if such reports do end up coming true, it would raise several uncomfortable questions. And understandably so. After all, for a company like Apple that is known for backing its creations to the hilt – case in point, the iPhone 4 – this would represent a massive shift from its stated position and would see the iPhone X facing the ignominy of becoming the first iPhone model to be axed by the tech giant after the first production cycle.
But as is the case with most things in life, it may not be all black and white and bidding goodbye to its favourite child could very well end up being a good move for Apple. But more on that later in the story.
For now, let's take a look at why reports may be suggesting that the iPhone X is facing a premature end.
Why iPhone X is being axed
The answer to that lies in the numbers.
According to a report released by research firm Kantar Worldpanel, Apple lost a good chunk of share in eight major smartphone markets around the globe during the period August-October 2017 as it worked to get its stocks ready for the grand entry of the iPhone X early November.
Data shows that Apple recorded a 7.6 per cent drop in market share for iOS in the United States as opposed to the numbers recorded during the same period last year. Similar trends were also seen in Great Britain where iOS dropped 8.5 per cent from 2016 and was followed by Japan (down 6.9 per cent), Germany (down 1.6 per cent), France (down 0.6 per cent), Italy (down 0.5 per cent), and Australia (down 0.2 per cent).
Though Apple is yet to reveal the number of iPhone X units it sold in the fourth quarter, but a new study from researcher Canalys has put a number on it. The tech giant sold 29 million iPhone X units in the fourth quarter, including 7 million in the US. These may look like strong numbers but the Canalys cautioned that the iPhone X might have performed “slightly below industry expectations” and early iPhone X shipments “were not the fastest ever for an iPhone”.
The loss in market share has also led to improved figures for Android which, according to reports, has benefited from Apple losing ground in the market.
What next for Apple
Despite being Apple’s most significant flagship in recent years, the iPhone X not pulling in the numbers could well see its tale coming to a premature end. But if it does, it won't just brand the iPhone X as Apple's biggest failure but also spark a larger rethink of strategy at the offices of the Cupertino-based tech giant. But above all, it will create in the market a vacuum for an ultra-premium high-end flagship Apple phone.
Enter Apple's lineup of iPhones for 2018.
According to Ming-Chi Kuo, to fix the problem at hand, Apple will release an updated version of the iPhone X with a 5.8-inch OLED screen, a larger 6.5-inch OLED model (call it an iPhone X Plus), and a new mid-range model that will feature a 6.1-inch display and borrow elements of both the iPhone X and the cheaper iPhone 8 models.
As per the research note published by Kuo, the 6.1-inch iPhone will feature an aluminum frame similar to the iPhone 8 (instead of stainless steel). Though the phone will feature the same notch-ridden bezel-less design at the front, the use of an LCD panel instead of OLED could bring the cost of the phone down to between $700-$800, making the device more appealing to many customers who chose to skip the current generation iPhone lineup because of its steep price or lack of new features.
Bringing out the new phones makes sense for Apple as it would finally see it phasing out its decade-old core design and move to a future where all its phones will sport similar all-screen fronts with no fingerprint scanners and a notch housing the hardware for Apple's latest FaceID tech.
Ultimately, in martyring the iPhone X, Apple may end up laying the foundation for the success of a number of devices, just the way the first iPhone did for multitouch display-sporting smartphones over a decade ago.