Apple iPhone 5.8-inch variant to be the cheapest model in 2018

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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. The iPhone X now costs $1000 (or approx Rs 65,085), making it the most expensive smartphone from Apple.

As per Digitimes Research Senior Analyst, Luke Lin, the current iPhone X has a MBOM over US$400. On the contrary, analysts are now reporting that there will be two OLED iPhones this year and one of them, a 5.85-inch model, might, in fact, be the cheapest iPhone this year. This means that the iPhone X successor with 5.8-inch OLED display will be the cheapest model to be announced this year.

There was another project, undertaken by Apple, to develop a 5.85-inch LCD iPhone.

The weak demand for iPhone X, saw the company pulling in a lot fewer OLED panels from Samsung Display than it had committed earlier.

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According to the DigiTimes report, the 5.8-inch iPhone 11 cost will be around 10% cheaper to produce. A new report out of Taiwan claims that Apple is going to start trial production of this year's iPhones well ahead of schedule. However, the project was suspended in mid-February and seems to have been completely scrapped. This could also result in the increase in prices as Apple has finalised an agreement with Samsung Display "with satisfactory terms". But there's still no confirmation on when Apple will employ its own displays on its iPhones. It is unlikely that the technology will reach an iPhone for at least three to five years as MicroLED screens are more hard to produce than the current displays, Bloomberg said.

Phone manufacturers tweak screens to their specifications, and Apple has for years calibrated iPhone screens for color accuracy, but this marks the first time Apple is designing screens end-to-end itself. Now a new report has surfaced online suggesting price of the 5.8-inch variant. We could very well see a new Apple Pencil with expanded compatibility for lower-end iPads. The sooner Apple can deliver that improvement, the better it'll be for the competitive positioning of Apple's iPhone X series of smartphones.

While that business model has worked for them in the past, rumors surrounding the company claim that Apple is now interested in developing its own parts, so that they can get the upper hand in the competition.

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