Apple will kill off the iPhone X this year, according to Mirabaud Securities analyst Neil Campling, although skepticism on the prediction is understandably running high.
While the iPhone X has its fair share of shortcomings, saying that the smartphone will be discontinued is certainly on the extreme side of things. Is there truth to Campling's claim?
iPhone X Discontinued This Year, Analyst Says
Campling, in a research note to clients that was obtained by CNBC, wrote that "the iPhone X is dead."
The analyst based this prediction on the status of Taiwan Semiconductor Manufacturing, which is the biggest semiconductor foundry in the world and one of Apple's top suppliers. According to Campling, the oversupply of chips made by TSMC "has never been higher," as Mirabaud Securities has tracked the company's inventory data for more than a decade.
Campling said that the oversupply of chips at TSMC is because Apple is not buying components for future iPhone X models. This, Campling says, suggests that the iPhone X "will be killed off this year."
Here's Why The iPhone X Will Live On
Campling said that Apple will stop making iPhone X models because it is too expensive, with customers not purchasing the smartphone due to its $999 starting price. However, despite all these factors, it remains very unlikely that the iPhone X will be killed off.
The iPhone X price tag may have put off some customers, but the high-end smartphone was never intended to be accessible to everyone. This is why Apple is offering iPhones as low as $349. However, Apple may already be addressing this problem, with rumors claiming that one of three upcoming iPhone models this year is a cheaper iPhone X successor.
Meanwhile, Patrick Moorhead, Moor Insights & Strategy president and principal analyst, told CNBC that "the word 'killed' doesn't make any sense at all."
"Apple will update the iPhone X, but won't kill it. The suppliers impacted have likely been replaced by another supplier so their numbers are going down," Moorhead added.
"Frankly, the whole thing sounds ridiculous," said Avi Greengart, the research director for consumer devices at Global Data, without mincing words.
Even if iPhone X sales dipped after what had been reported to be a record fourth quarter, it is unlikely that Apple will change course so significantly and decide to end production of the smartphone.
Also, a recent report noted that the iPhone X made much more money compared to the combined profit of all Android smartphones in the fourth quarter.
Apple may have not yet confirmed that the iPhone X is not dead, but it certainly looks like the high-end smartphone is not in danger of being killed off.