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Apple Slashes Production Cost For Cheap New 5.8″ iPhone X

Apple has slashed the production cost of its new ‘affordable’ 5.85-inch OLED iPhone X, with an initial manufacturing bill of materials (MBOM) significantly lower than its current flagship model.

According to Taiwanese trade publication, DigiTimes, the new 5.85-inch iPhone X features an MBOM over 10% less than the current model.

As per Digitimes Research Senior Analyst, Luke Lin, the current iPhone X has a MBOM over US$400.

Scheduled to launch this year, Apple is tipped to unveil three new iPhone X successors; an OLED 5.85-inch, OLED ~6.45-inch and 6.1-inch LCD model.

Courtesy of the cost reduction, Line expects the 5.85-inch OLED version to be the most of affordable of the new iPhone Xs.

Citing cost concerns, Apple initially expected the 5.85-inch model to use an LCD, than the more expensive OLED.

As previously reported, weak sales of the current iPhone X resulted in Apple utilising far less Samsung OLED display panels than forecast.

Despite this, Lin claims Apple has reached an agreement with Samsung Display to procure OLED panels without a cost increase – thereby leading to the inclusion of the premium display panel in the ‘affordable’ 5.85-inch iPhone X successor.

To support its affordable price tag, the new 5.85-inch iPhone X successor will incorporate low-level specification components than its 6.1-inch LCD counterpart – e.g.  LPDDR memory.

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