iPhone X SE Leak Reveals Apple's Expensive Smartphone

Acclaimed KGI Securities’ analyst Ming-Chi Kuo has been prolific in January and now he brings us insight into Apple AAPL +0.23%’s iPhone plans for 2018 and not everyone is going to like them…

In three new reports each attained by MacRumors, Kuo states Apple will launch three iPhones based on the iPhone X design this year: a second generation 5.8-inch iPhone X, a 6.5-inch ‘iPhone X Plus’ and a long awaited and supersized 6.1-inch ‘iPhone X SE’. So far so good and there’s more good news as well.

iPhone X next generation concept

Kuo states that all three new iPhones will have larger battery sizes. He breaks these down as an incremental bump for the second generation iPhone X (2800 vs 2,715 mAh), a hefty 3,300-3,400 mAh battery in the iPhone X Plus and a battery up to 2,950mAh for the iPhone X SE. This is has been backed up by Chinese language site ET News.

And yes, the iPhone X SE will make compromises. The aforementioned battery won’t use the same advanced technology which allowed Apple to squeeze an L-shaped battery into the iPhone X (something it will continue with the iPhone X Plus and second gen iPhone X). It will also miss out on an OLED display, dual camera and (strangely) omit 3D Touch.

None of these things are likely to be deal breakers for most users, instead what is likely to raise alarm is the price Kuo says Apple will charge.

While some rumours have claimed a second generation iPhone X would drop in price to accommodate a larger iPhone X Plus, Kuo says this is not true. He claims the second gen iPhone X will again start at $1,000, the iPhone X Plus will be priced higher (likely $1,200-$1,350) while the once-cheap iPhone SE will see its iPhone X-inspired successor come in at more than an iPhone 8 starting from $700-$800.

Apple iPhone 2018 expected range

Given the current iPhone SE starts from just $349, this will mean its successor more than doubles the price. As such Apple’s cheapest iPhone is likely to be the iPhone 7, which will replace the iPhone 6S in September and start at $449.

But why would Apple risk moving iPhones from a 2017 price range of $349-$1,150 to a potential 2018 price range of $449-$1,400?

It could be argued Apple is confident in the iPhone X sales it has seen (despite some analysts claiming they will disappoint), but I think the answer lies in a controversial claim Kuo made last week.

Kuo previously said he expects Apple to cancel the iPhone X after one generation. The logic is by not retaining the phone at a cheaper price, Apple can keep its design limited to premium models only. Were it to drop the price to $800-850 it would also risk the iPhone X cannibalising sales of the less fully featured iPhone X SE.

Yes, iPhone fans are famed for their loyalty. But based on what Kuo reports are Apple’s plans for 2018, the financial demands placed on users this year will see that loyalty sorely tested…

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