Apple has stopped buying parts for the iPhone X, indicating that it has no future, an analyst says.
(CCM) — Apple plans to abandon its troubled flagship iPhone X smartphone later this year because its $999 price tag means it has failed to gain traction in the market, according to a CNBC report.
"The simple problem with (iPhone) X is that it is too expensive," Neil Campling, an analyst at Mirabaud Securitues, said in the report. "Consumers are turning their backs on high-priced smartphones."
Campling has spotted that Taiwan Semiconductor Manufacturing (TSMC), the world's largest chip maker, has a huge inventory of unsold chips, forcing it to reduce its full-year revenue target. This large inventory build-up has been caused by Apple ceasing to buy components for future iPhone X models, he said, leading him to conclude that the device will be discontinued later in 2018.
He added that the existing stock of iPhone X models will continue to be sold off, but no new ones will be produced after that date.
Campling's prediction echoes that of Ming-Chi Kuo, an analyst at KGI Securities, who said as far back as January that the iPhone X could be cancelled this summer.
To replace the iPhone X, Campling expects Apple to release an iPhone with a price tag of around $500 dollars, and another which can fitted with two SIM cards. Many Android phones already offer dual-Sim card capabilities, and the feature has proven popular with businesses and with consumers in the Asian market.
Image: © Apple.