While there are multiple ways in which Apple can do that, the most basic one would be to start selling a cheaper iPhone in the price-sensitive markets such as China and India, which also happen to be the few markets in the world where Apple has struggled to make a dent.
A report from English-language Chinese media outlet The Global Times claims Apple will release the lower-priced iPhone in an attempt to stem sliding sales in the Chinese market, which have been adversely affected by the ongoing trade war between the US and China. If Apple does manufacture an iPhone with this feature, several other markets will be interested in it as well.
This isn't the first time Apple has made an exclusive iPhone for China. While the iPhone XR is aimed at users who want current iPhones at low-prices, it competes price-wise with full-featured smartphones from Chinese OEMs, costing it sales with value-conscious customers.
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These reports have cited sources within the industry supply chain. While there were certainly rumors of in-display Touch ID ahead of the 2017 iPhone X reveal, Apple quashed all possibilities of that happening by going all in on Face ID, and there's never been any mention of in-display Touch ID implementations ever since. However, the idea isn't completely out to lunch. The reports suggest Apple's new iPhone model in China will be more affordable as it replaces the more expensive TrueDepth camera system with an under-display fingerprint sensor on an OLED panel. Touch ID has also already started its renewal by coming to the Macbook Pro and MacBook Air.
Now, fresh reports indicate that Apple might be looking to bring back Touch ID on iPhones. The new iPhone model may ditch Face ID for an under-display fingerprint sensor. By comparison, it's unclear how popular Face ID has been in China. This encouraged Apple to concentrate more on China market and for this, it is releasing new models confined to China only.
However, completely removing Face ID for an under-display fingerprint sensor for just one specific market seems too far fetched, even for Apple.