There are big changes afoot at Apple going by a new Wall Street Journal report. It seems the brand is rethinking its all-OLED strategy for the future.
To recap, Apple is probably going to release 3 new iPhones this year. One is a direct sequel to the 5.8-inch OLED iPhone X, the second is a bigger 6.5-inch iPhone X Plus, and the third is a 6.1-inch LCD iPhone. According to supply chain sources, the company is rebalancing production plans for the handsets.
It appears that Apple initially wanted to have a 50-50 split between the OLED and LCD models. The firm has now ditched this idea in favor of making more units of the LCD iPhone. It thinks consumers might lean more towards the cheaper smartphone.
Apple 2019 iPhone Plans
There were actually hints of this happening in earlier reports. Apple has apparently cut manufacturing plans by 20% to 80 million units in all, heavily favoring the LCD iPhone in the process.
This plan might even extend to 2019, as the Wall Street Journal claims that Apple will retain the LCD iPhone next year as well. This goes against previous rumors, but still makes sense. After all, OLED panels are in short supply thanks to Samsung’s monopoly. Rivals like LG will take time to catch up.
Moreover, Samsung supposedly charges $100 for every OLED panel. This is much higher than the $40 an LCD panel costs. It would be impossible to make a low-cost iPhone with an OLED display in these circumstances.
Apple has been widely reported to be disappointed with the iPhone X’s sales numbers. The device has sold well, but not in the numbers the company had hoped it would. The $999 price tag had deterred more customers than it had estimated.
This year’s lineup could be a course-correction of that by introducing an affordable LCD iPhone, a cheaper iPhone X (2018), and a premium iPhone X Plus. Rates are expected to start at $600 and go up to $1000.