Second Generation iPhone X to Cost Apple Less to Manufacture [Report]

Apple has managed to reduce the manufacturing bill of materials for the next generation iPhone X and may position it as the lowest cost device in its new lineup, according Digitimes Research senior analyst Luke Lin. Last year, the iPhone X had an MBOM of over $400 and sold for starting price of $999. The MBOM for the new device is expected to be over 10% lower than that.

Apple has recently determined the direction for its next-generation iPhone lineup - which will consist of two OLED-based iPhones (5.85-inch and 6.45-inch) and a 6.1-inch LCD model. Thanks to the cost reduction, Apple may position the new 5.85-inch device as the cheapest model of all three next-generation iPhone models, Lin believes.

Lin claims a project to develop a 5.85-inch LCD iPhone was suspended at the end of the Lunar New Year holidays in mid-February and could be terminated. Due to cost concerns, Apple began developing an LCD device which could have replaced the current OLED model. Although a reduction in iPhone X orders gave Samsung more bargaining power in negotiating prices, the two companies have reached satisfactory terms which will prevent cost increases from the panel side.


It's now believed that the new 5.8-inch OLED iPhone may be the cheapest out of three new iPhones in Apple's 2018 lineup as some of the recent engineering samples have adopted components with lower-level specifications or lower capacities than the rumored 6.1-inch LCD iPhone. LPDDR memory is said to be one of the major differences.

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