I am in Japan now and according to Japanese component makers, Apple could go sooner than later with a new premium iPhone offering while at the same time killing off their recent iPhone X along the way.
According to sources Apple has admitted privately that their new iPhone X was not as technologically advanced as it could have been and that their next premium iPhone will be “significantly” more advanced than their competitors, when it comes to security and the use of artificial intelligence.
Privately Apple believe that the development of their own processors which they believe will be superior to offerings from Intel and Qualcomm will give them a distinct advantage over arch rival Samsung.
Piper Jaffrey senior analyst Mike Olson says that by designing its own chips, Apple cuts component costs, gets an early jump on future features because it controls research and development and keeps secrets away from Samsung and Chinese Companies who Apple believe have tried to steal their intellectual property.
This week Apple told Japanese suppliers that it is cutting production targets for its flagship smartphone in half, Sony supplies iPhone X’s12-megapixel camera with the Company set to be affected by the decision.
Apple’s initial target for the iPhone X was 40 million units during the first three months of 2018, but that has been slashed to 20 million units due in part to production problems and a lack of sales particularly in major markets such as China, the USA and Europe.
Despite the setback Apple believes that by replacing the iPhone X with a new model they can stall the exodus of traditionally loyal Apple iPhone customers to Samsung who next month will launch the Galaxy 9 which is set to be a new benchmark device the smartphone industry.
Analysts have lowered their estimates for iPhone X shipments in the past few weeks, citing its $1,400 price tag as a main factor for downgrading the stock.
A survey of people planning to buy the iPhone showed that the percentage of them looking to buy the iPhone X has dropped to 37 percent from 43 percent in an earlier survey, UBS analysts wrote in a note on Monday.
Rather than keep the iPhone X as a cheaper option for customers — the same way they still sell the iPhone 7 and 6s — Apple will reportedly kill off the iPhone X some say because Apple are concerned that it will not only cannibalise sales, but it will be seen as technologically inferior to not only the new model iPhone but offerings from their competitors.