Apple will release 3 new iPhones next year — including a super-sized iPhone X (AAPL)

A mockup of what next year’s iPhone lineup could look like, according to KGI Securities.KGI Securities

• Apple will launch three new iPhone models in 2018, according to a reliable Apple analyst.
• One of the new phones predicted is a low-cost model that features an edge-to-edge LCD screen and TrueDepth facial recognition for between $649 and $749.
• Apple is also said to be working on a 6.5-inch iPhone with a design like the iPhone X but with a bigger OLED screen.
• Apple will also launch a successor to the iPhone X with a 5.8-inch OLED screen, according to the report.

Apple will release three new iPhone models in 2018, KGI Securities analyst Ming-Chi Kuo predicted in a note distributed to clients on Monday seen by Business Insider.

Kuo and his research team is well-known for accurately predicting details about upcoming Apple products thanks to his connections in the Asian manufacturing industry.

“We predict Apple (US) will launch three new iPhone models in 2H18: 6.5-inch and 5.8- inch OLED models and a 6.1-inch TFT-LCD model, all equipped with a full-screen design and TrueDepth Camera (front 3D sensing), as with iPhone X,” Kuo wrote in Monday’s note.

Apple is preparing two iPhones targeting the “high-end market,” the researcher writes. The third model will be aimed at the middle and low-end markets, with a predicted price tag of between $649 to $749, Kuo writes.

The high-end iPhones will include one phone with the same screen size and technology (OLED) as the iPhone X, and a super-sized iPhone X model with a 6.5-inch screen. The iPhone X currently retails for $999.

The high-end phones will have edge-to-edge screens and Apple’s facial recognition camera, Face ID, like the iPhone X. The low-end new iPhone will use facial recognition instead of a fingerprint sensor, and will sport a 6.1-inch LCD screen at a lower resolution than the high-end OLED phones, among other differences in hardware and design specs.

A “real super-cycle”

Apple CEO Tim CookApple

The three new models will drive a “real super-cycle in terms of iPhone replacement demand,” the analyst writes, predicting 100-120 million iPhones assembled in the second half of 2018.

Kuo now pegs next year as the “real super-cycle” because he believes Apple will release its new phones on-time without delays, the larger range of price-options with Face ID, and strong demand for iPhone X continuing through 2018. He also mentions that he believes Apple will ship 25-27 million iPhone X units this quarter, which will grow 35%-45% in the first quarter of 2018.

Analysts previously predicted this year’s high-end iPhone X would drive a “super-cycle” of sales to upgraders, but a seemingly short supply has caused some researchers to delay their supercycle forecasts to 2018 or later.

Kuo says he views Apple shares and its key suppliers positively in 2018. Apple usually launches new iPhones in September, so obviously, lots of things could change before then. However, Apple executives have said that they “lock” down new iPhone hardware designs in November, 10 months before they are released.