Why Apple May Be Lowering iPhone Prices This Year
Apple may be reversing course and lowering iPhone prices, after iPhone sales growth slowed with 2017’s $1,000 iPhone X model, and price hikes on the iPhone 8 line up. This year’s new iPhone X will likely come in two models and could start at $900, Morgan Stanley analyst Katy Huberty forecast in a report on Monday.
Expected to arrive in September as usual, the potentially cheaper new iPhone X successor will still have a 5.8-inch OLED screen. A new $1,000 Plus model will have a 6.5-inch OLED screen, Huberty added. The current iPhone X, introduced on September 12 last year, costs $1,000 with a 5.8-inch OLED screen, Apple’s first use of the higher-contrast display technology.
Sales of the iPhone haven’t gone down, but also haven’t grown much, since Apple introduced the X and an iPhone 8 in two sizes. Apple sold 129.5 million iPhones over the past two quarters, up just 0.4% from the same period the year before, when it introduced the iPhone 7. But revenue is up 14% to $99.6 billion, thanks to the higher prices. Apple likely won’t be able to push through another price hike or add an even more expensive model at, say $1,500, this year so future growth will depend more on selling more phones.
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