According to Rod Hall, an analyst at JPMorgan, the price of the next iPhone’s most expensive model could be as high as $1,100 since the costs of production have risen more than had originally been anticipated. The analyst also expects delays in shipping due to challenges experienced with regards to some of the new technologies that will appear in the next iPhone.
“Importantly, we do not believe that Apple’s production schedule is still changing materially with most current delay reports simply dated reverberations of decisions Apple made back in the spring,” Hall said.
For the current quarter which ends on September 30, Hall has cut revenue estimates from a previous figure of $54.14 billion to $46.998 billion. Hall has also cut earnings per share estimates from $2.30 to $2. But for the annual results, Hall has estimated that revenues will be $291.14 billion which is higher than an earlier estimate of $274.4 billion. Hall estimates that the earnings per share for the full fiscal year will be $13.90 against an earlier estimate of $13.11.
With regards to shipments of the next iPhone, Hall had initially been expecting that the number of units the Cupertino, California-based tech giant would have ready would be 9 million but projects it will be approximately 2 million. But while production will at first be slow in September, output will be ramped up in the ensuing months.
Revision of the estimates by the JPMorgan analyst comes in the wake of more speculation over the features that are likely to be contained in the next iPhone model. Based on the code of the firmware Apple released for its HomePod speaker and which inadvertently revealed some information on the upcoming iPhone, some of the new features include a new security system and a new frontal design.
According to the developers who scoured the HomePod firmware, the display of the next iPhone will cover the entire front part of the device. This will mean that the home button will no longer exist and by extension, the Touch ID scanner. In its place Apple will be introducing facial recognition whereby the iPhone will be unlocked by use of facial recognition software. Another feature that is expected is wireless charging.
The next flagship iPhone, which could go by various names including iPhone 8, iPhone Pro or iPhone X, is expected to be launched alongside other models which will be cheaper.