Talks of Apple’s rumored iPhone SE2 are everywhere. But as speculations mount around the creation of a new product, talks about the death of another swirl. The iPhone X, which was just released in November 2017, is dead.
The iPhone that got rid of Touch ID and ushered in new features like Face ID and Portrait Mode will be killed off after just its first generation, says Neil Campling, the co-head of banking group Mirabaud Securities. In a note to investors that was leaked by CNBC, the analyst states that the cause of death was simply the smartphone’s cost. “Consumers are turning their backs on high-priced smartphones,” he writes. The phone will still be on sale, but no new ones will be produced. The iPhone X currently retails for $999, and CEO Tim Cook was adamant about keeping it that way, noting that it was priced “at a level that is consistent with the value of the phone.”
Campling’s note detailed that Apple overshot the demand for the phone by such a large margin that the company won’t be manufacturing a single new iPhone X anymore. This dealt a major blow to companies that produce the electronic parts that go into making this specific iPhone.
The leaked note specifically mentioned the iPhone chip supplier Taiwan Semiconductor Manufacturing Company (TSMC), which has been hit the hardest by this cancellation decision. The company currently has a surplus of chips that Campling says hit “record highs,” and with the brakes fully pumped on iPhone X production, TSMC will likely not see any returns on their investment. The company’s stock has been suffering as of late, and this news only adds insult to injury.
While the future of the iPhone X might be cut short, Apple may have a plan that could save them from this slump. There have been rumors the company might announce a new line of cheaper phones to succeed its last iPhone.
The consumers have spoken: The iPhone X is too expensive. And while Cook might want to keep it that way, Apple will probably be selling cheaper phones pretty soon.