iphone x
iPhone X Screencap: Apple

Apple’s supply chains are looking into cutting the iPhone X’s cost next year, according to the Economic Daily [via Apple Insider ].

Apple revealed the $999 iPhone X in September alongside the iPhone 8 and iPhone 8 Plus, and is set to release the device next month.

The report said Apple has been developing 2018 iPhones with that will include many or all iPhone X features for lower prices. Next year’s models are codenamed “Lisbon” and “Hangzhou.” Supply chain sources are reportedly looking into cutting the iPhone X’s costs, which would reduce the price consumers pay for the devices. The report did not say whether the iPhone X itself will see price decreases.

The move to reduce the costs is due to the price sensitivity in the Chinese market, sources told the site. Macotakara, a Japanese site, predicts a $90 decrease with the new 2018 models, which is the usual price deduction with year-over-year upgrades.

The iPhone X has a $999 starting price for the 64GB model. The price increases more than $1,000 for other versions with more capacity. The iPhone X has some more innovative features than the iPhone 8 and iPhone 8 Plus, like its Face ID, Animoji and an edge-to-edge Super Retina display with OLED technology without the Touch ID button.

However, the high prices could lead some consumers to overlook the device.

When the iPhone X came out, people took to social media to comment about the high price.

Deutsche Bank analysts said during the summer investors will be “disappointed by iPhone growth in FY-18 and FY-19.” The analysts said the higher price of the iPhone could affect sales.

"Generally, when prices go up, demand goes down," they said. "A scenario where prices go up and demand goes up seems highly unlikely in our view."

Meanwhile, an optimistic report this week from research firm Gartner said the iPhone X will help increase smartphone sales in 2018. Gartner predicts the iPhone X will boost sales in North America, China and Western Europe, even though the device has a high price.

While the high iPhone X price could be of concern, signs of bad iPhone 8 sales could mean consumers are waiting to buy the 10th anniversary device instead. In a carrier survey, people said they waiting to buy the upcoming iPhone X or to compare the 10th anniversary device with other models before purchasing the iPhone 8 or iPhone 8 Plus, according to a note from a KeyBanc Capital Markets analyst obtained by Reuters.

The iPhone 8 and iPhone 8 Plus, which were released last month, haven’t been doing so well in the market, according to reports. Apple has reportedly already asked suppliers to cut production of the smartphone by almost half. Meanwhile, the KeyBanc Capital Markets analyst said the survey suggested the iPhone 7 was outselling the iPhone 8.