Apple will reinvent the iPhone line later in 2018, but right now the company is facing a troubling time. None more so than with the iPhone X, which a leaked report reveals “is dead”…
This shocking information comes from Neil Campling, co-head at international banking and finance group Mirabaud Securities. Campling states Apple will not produce a single new iPhone X because it will be cancelled after just one generation and Apple overestimated demand so badly that the company has already made all the units it will need until that end date.
“The iPhone X is dead,” states Campling in a leaked note to investors. “The simple problem with X is that it is too expensive,” he said, expanding on the information in a subsequent interview with CNBC, “Consumers are turning their backs on high-priced smartphones.”
Singling out iPhone chip supplier TSMC in particular, Campling said it has been badly burnt by the experience causing inventory stockpiles to hit “record highs”. Mirabaud has tracked TSMC data for over a decade.
Campling notes another iPhone X supplier, Austrian sensor maker AMS, could see its revenues decline up to 35% quarter-on-quarter – almost double the 18% markets had feared – as interest in the smartphone plummets.
And Campling’s dire warnings are far from isolated.
Industry insiders and analysts have been warning the so-called sales ‘supercycle’ for Apple’s 10th anniversary iPhone would fail to materialise and now the numbers are not even expected to live up to the iPhone 7 and sales have been stagnant or falling since the iPhone 6 in 2014. Meanwhile famously accurate KGI Securities’ analyst Ming Chi-Kuo warned everyone in January the iPhone X would be cancelled.
But Apple’s troubles should not be seen as bad news for customers. In fact, it’s quite the opposite.
These challenges are forcing Apple to reinvent the iPhone range and find new ways to woo customers. Consequently, recent leaks reveal the most exciting new iPhone line-up in years. Perhaps most likely to turn heads is a highly affordable new iPhone X-variant, as well as price cuts for the second generation iPhone X and a cheaper-than-expected 6.5-inch iPhone X Plus.
The moral of the story: sometimes a little adversity can do a lot of good…