Apple to Lower Prices on New Crop of iPhones: MS

Apple Inc.’s (AAPL) new crop of iPhones, which are expected to launch this fall, could come with more palatable pricing after the $1,000 plus iPhone X failed to take off.

Wall Street firm Morgan Stanley expects Apple to price its upcoming 5.8 inch iPhone X at $899 while the larger 6.5 inch model would start at $999. Katy Huberty, an analyst at Morgan Stanley also thinks a 6.1 inch LCD screen based iPhone will be priced between $699 and $769, reported TheStreet.com.  Currently, the 5.8 inch iPhone X sells for $999 while the 4.8 inch LCD based iPhone 8 has a starting price tag of $699 and the iPhone 8 Plus starts at $799.

Meanwhile Ming-Chi Kuo, a long time Apple analyst thinks the 6.1 inch iPhone will have a price tag of between $600 and $700 even with Face ID and an edge to edge display. The analyst, according to TheStreet.com, said the device will have a lower cost display, zero 3D Touch support and a single lens rear camera, which will drive the price lower.  (See more: Apple: Next iPhones to Have Cheaper LCD Displays.)

Lower iPhone Prices Wouldn’t Be Too Shocking

If the Wall Street analysts’ assessments prove true it won’t be too surprising to see Apple lower the prices on its latest round of iPhones. After all the iPhone X has had a tough go of it both in the U.S. and overseas. The main reason is the starting price of $999 which proved too pricey for Apple fans. Apple did say in May that the iPhone X was the best selling of its mobile phones during the March quarter but analysts told the Wall Street Journal that LCD models are selling the most given the price point is lower.  (See more: Apple Led Company Stock Buybacks During Q1.)

Apple Slowing Down OLED Push

As a result of the lackluster sales of the iPhone X Apple is increasing production of its new LCD based phones for the fall launch. Earlier this month the Wall Street Journal, citing people involved in Apple’s supply chain, reported LCD iPhones will make up the majority of the fall lineup, which is more than analysts had been expecting. It also implies that a move toward organic light emitting diode or OLED screens, which are bendable, will be rolled out on a more slower basis.  While the Cupertino, California tech company wanted to have equal production of both the OLED and LCD models it now plans to make more of the LCD ones, betting consumers will favor the lower cost model.