Arjun Kharpal, writing for CNBC under the jacktastic headline “Apple’s iPhone X Will Be Killed Off This Year, Analyst Says”:
TSMC’s record inventory levels are due to Apple not buying components for any future iPhone X models, suggesting the device will be killed off this year, Campling said.
“With the declines in iPhone X orders and the inventory issue at TSMC at record highs, which basically reflect a need to burn off inventory. Why? Because the iPhone X is dead,” Campling wrote in his note.
“The simple problem with X is that it is too expensive,” Campling told CNBC by phone on Friday, talking about the device’s $999 price tag. “Consumers are turning their backs on high-priced smartphones.”
It might be true that the iPhone X will be discontinued in September when new iPhones are announced, but I guarantee it will be replaced by a successor. It actually makes sense that Apple wouldn’t keep the iPhone X around for another year at a lower price — that’s the iPhone 8’s role.
I don’t know why CNBC is paying credence to Campling on this, because by all accounts the iPhone X is selling well or very well. Tim Cook told CNBC in February that “iPhone X was our most popular iPhone, despite not beginning to ship until November.” A report this week from Counterpoint claims the iPhone X alone accounted for 35 percent of all profits in the industry in Q4 2017 — even though it only went on sale in November. (The iPhone 8 and 8 Plus combined for 34 percent; all iPhones combined accounted for 86 percent. I don’t know how much credence to give to Counterpoint’s report because I don’t know their methodology, but if their numbers are even vaguely accurate, Apple has almost no competition in the premium handset market. Samsung’s top two phones combined account for less than 5 percent of industry profits, and no other company had a phone that cracked the top 10.)