Apple to Cancel iPhone X Model Due to Disappointing Sales

2018 iPhone lineup

2018 iPhone lineup

Analysts have blamed the low demand on the high price of the iPhone X, with many customers opting instead for the more affordable but similarly-capable iPhone 8 and iPhone 8 Plus-or even 2016's iPhone 7.

The most short-lived iPhone Apple has ever made?

According to AppleInsider, which has seen Ming Chi Kuo's note and reported on it, the Apple analyst says the company will ship 18 million iPhone X devices in the first calendar quarter of 2018. It's worth noting that Kuo isn't the only analyst who believes Apple will kill the first-generation model: Rosenblatt Securities analyst Jun Zhang thinks the same thing. It's believed that the new 5.8-inch OLED model will remain at a $999 price point while the 6.5-inch OLED model will cost around $1099.

Apple is likely to kill off its first generation iPhone X this year, before the company rolls out the next wave of iPhones in its 2018 lineup.

There are also supply chain considerations to look at.

Shortly after the release of the launch of the iPhone X across Australasia, Apple sent out a statement saying that demand for the phone was "off the charts" in response to early concerns the phone wouldn't be as popular as previous models.

In addition to potential volume constraints, OLED panels are also extremely expensive. Before it can release three new handsets with "all-screen" designs and facial recognition, which analysts expect to fly off the shelves, Apple still needs to tally the Q4 2017 scores, and figure out how to keep the original X in the spotlight.

The iPhone X uses a special camera array at the front that Apple calls the TrueDepth system, and which allows the camera to isolate a person's face from the background to recreate all the various Portrait Mode features previously available to the rear camera only.

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. FNY Managed Accounts LLC now owns 800 shares of the iPhone maker's stock worth $115,000 after buying an additional 716 shares during the last quarter.

Apple in December said it would provide Finisar with $390 million in funding for a new optical device manufacturing plant.

But others on Wall Street are more confident.