“Apple plans to launch a new 5.85-inch OLED iPhone this year as an upgrade to the existing iPhone X, but the vendor has managed to reduce the new device’s initial manufacturing bill of materials (MBOM) to a level much lower than that of its present flagship model, according Digitimes Research senior analyst Luke Lin,” Joseph Tsai reports for DigiTimes.

“Lin cited information from Apple’s upstream supply chain as indicating that the new device’s MBOM will be more than 10% lower than that for iPhone X,” Tsai reports. “He added that the MBOM of the iPhone X was more than US$400 in 2017.”

“Apple has recently determined the direction for its next-generation iPhone lineup – which will consist of two OLED-based iPhones (5.85-inch and 6.45-inch) and a 6.1-inch LCD model. Thanks to the cost reduction, Apple may position the new 5.85-inch device as the cheapest model of all three next-generation iPhone models, Lin believes,” Tsai reports. “Apple has recently reached an agreement with Samsung Display, securing satisfactory terms that will prevent cost increases from the panel side, Lin noted.”

Read more in the full article here.

MacDailyNews Take: As always, Apple’s iPhone pricing will be critical.

We will say that our 256GB iPhone X units were worth every penny and then some. iPhone X is one of the very best products Apple has ever produced.

And, yes, despite our love of iPhone X, we cannot wait to get our hands on those 6.45-inch OLED iPhones coming later this year!