Well-known Apple analyst Ming-Chi Kuo has suggested Apple will seek a “more aggressive” price strategy for the upcoming iPhone smartphones rumoured to debut this September.
MacRumors, which first covered Kuo’s prediction, reported that this “more aggressive strategy” aims to boost shipments of the models for this year. Kuo further went on to say that Apple is “concerned over the negative impact of a higher price.”
This makes sense, given that the company received blow-back for pricing the iPhone X at $999 USD for the 64GB model. In Canada, it was even worse as the device originally retailed at $1,349 CAD outright.
Kuo stated the 6.5-inch OLED, iPhone X Plus will retail between $900 and $1,000 USD ($1,168.43 – $1,298.25 CAD); the second gen iPhone X will retail between $800 and $900 ($1,038.18 – $1,168.45 CAD) and the 6.1-inch iPhone with a LCD display will retail at $600 to $700 ($778.42 – $908.16 CAD)
Recent rumours indicate Apple will use OLED displays on all three handsets.
Kuo also stated that Apple is adopting the price strategy due to the way a high price can impact a mature smartphone market that already has selling momentum. Additionally, Apple has an improved cost structure due to assembly improvements and pricing reductions on certain parts. Lastly, Kuo said the lower price will increase users of Face ID, which will benefit the promotion the company’s ecosystem.
Kuo forecasts that Apple will announce all three new iPhone models at its September event.
The research analyst Ming-Chi Kuo departed KGI Securities in April and now works for TF International Securities.