The iPhone 9 Will Retail At $799, Cost Apple $275 To Produce With No 3D Touch

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Jul 5, 2018
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Apple’s 2018 iPhone crop is entering mass production and contract manufacturer Wistron has received the short end of the straw. Apple has got a lot riding on this year’s devices as it looks to permeate Face ID and True Depth across the three iPhones. In opposition, last year’s iPhone lineup featured only one device with advanced 3D facial recognition.

The company’s manufacturing problems with the $1000 iPhone X, owing to its True Depth camera’s calibration received widespread coverage after the device’s launch. The iPhone X had already seen a delayed release from Apple’s end and yield problems resulted in customers experiencing delayed delivery. Now, it looks like Apple is eager to avoid similar outcomes with this year’s iPhone lineup.

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Apple Axes Wistron As Its Contract Manufacturer For The 2018 iPhone 9, iPhone X(s) And iPhone X(s) Plus With Foxconn Expected To Step Up Once Again

A survey of Apple’s supply chain shows that contract manufacturer Wistron is facing yield problems with the 2018 iPhone. While we’re not sure which one of the iPhones Apple required Wistron to manufacture, the company will not get a share of Cupertino’s 2018 iPhone pie that’s for sure.

Terry Gou’s Hon Hai Precision Group (Foxconn) and Pegatron will now manufacturer the three devices. Out of the pair, Foxconn will once again take the brunt of manufacturing. The Shenzen based group will manufacture all units of the 5.8″ iPhone X(s), that will succeed last year’s, iPhone X.

Foxconn will also assemble 90% of the 6.5″ iPhone X(s) Plus and 75% of the 6.1″ iPhone 9. Out of these, the latter will determine how well Apple’s 2018 iPhone lineup performs as Cupertino is set to bring Face ID to a lower price point with the device. Additionally, Apple will order about 83 million units of the device according to analyst Arthur Liao of Fubon Securities.

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The 2018 iPhone 9 Will Retail At $799 And Cost Apple $275 To Manufacture, Consisting Of Nearly The Same Parts As The iPhone 8 Plus Except 3D Touch Believes Analyst

Additionally, Liao has more details for the LCD iPhone 9’s materials, cost, and final price. The smartphone’s final price is the source of some speculation as it will directly impact Apple’s ASP (Average Selling Price) due to its expected lion’s share of units shipped. Liao believes that the iPhone 9 will retail at $799, $99 more than former KGI analyst Ming-Chi Kuo’s latest prediction.

The analyst also provides details for one important omission from the device. Liao confirms that the iPhone 9 will not feature 3D Touch as eliminating the feature will save Apple $10/unit, bringing down the device’s manufacturing cost to $275. The smartphone’s 3D sensing module and a larger display will contribute $20 and $5 respectively. Apple will, however, save on its rear camera which is expected to be $15 cheaper than the iPhone 8 Plus’.

The bit about the rear camera is interesting especially if Apple really wants the device to sell. Removing 3D Touch and sticking with LCD for a lower price point is one thing, but if the company doesn’t improve the camera, users will really have little incentive to upgrade. After all, carrier plans ensure that the brunt of a smartphone’s cost is spread out over months, reducing the incentive for a cheaper device. Cupertino’s got a lot riding on the iPhone 9 but the company just might end up misreading the market.

Thoughts? Let us know what you think in the comments section below and stay tuned. We’ll keep you updated on the latest.

Source: Taipei Times

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