The market hype for Apple iPhone has never gone, since the release of its very first smartphone. However, the rising fame has translated into the soaring of iphone prices to the skies. The official price of the latest release of iPhone X with 5.8 inch display is $999 that positions the smartphone of Apple as an elite brand in the industry.
Rumors abound about the release of a new version of iPhone, that of iPhone X2 which would be priced lower than the previous release i.e. iPhone X. The reduction in the price of the new launch is due to Apple’s cost cutting measures and increase in managerial efficiency.
Which new models are expected?
According to some reputable sources, a new launch of iPhone X1 and iPhone X2 with a display of either 5.85 inch or 6.45 inch is expected. The models will be launched bezel-free and with OLED displays that will provide a better user experience due to improved contrast ratios.
It is further stated that another LCD display model, most probably iPhone 9, will also be launched alongside the two aforementioned models.
Will there be a price reduction?
The rumors about the price reduction are based on the anticipated behavior of Apple. The cost cutting measures recently taken by Apple such as improvements in Supply Chain adjustments and improved R&D will allow Apple to save approximately 10% of the manufacturing cost.
The reports of Digitimes indicated a rough estimate of iPhone X manufacturing cost which is around $400. Therefore, a 10% decrease would bring Apple and additional profit of $40 on every piece sold. Nevertheless, Apple seems not to cut down its marketing budget to position itself as an elite smartphone provider.
Considering the pricing power of Apple and its respective market share, it seems irrational to expect a plunge in the price of Apple’s new launches.
On the other hand, insider reports suggest that Apple is going to make huge profits due to increased managerial efficiency and substitution towards cheap inputs.