Apple’s 2020 iPhone Pricing Could Reach a New High Due to Use of New Materials, and a 5G Modem
As we have seen in recent years, consumers are no longer willing to splurge a huge amount on smartphones unless their features justify the cost. That’s why Apple seemingly believes that a couple of upgrades on its next-generation handsets merit a price hike. The news comes from analyst Ming-Chi Kuo, who expects the iPhone 12 price to increase due to two reasons.
Camera Upgrades Plus a New Cooling Solution to Control 5G Modem Temperatures Might Add to the iPhone 12 Lineup’s Cost
Apple kick-started the trend of $1,000 price tags in the smartphone industry. Apparently, the annual price rise was hurting sales, and that’s presumably the reason why prices remained the same this year even though the iPhone 11 series comes with a faster processor and impressive camera upgrades. However, that will reportedly change next year, as the iPhone 12 price is expected to be more than that of the iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max.
In a new note with TF International Securities, Kuo has reportedly said that he expects the iPhone 12 price to go up due to a new processing method and the integration of composite materials for the new metal frame structure. Earlier, Kuo reported that the iPhone 12 design could take inspiration from the iPhone 4, but that might result in an increase in per-unit cost. This will most likely be passed on to consumers, meaning they’ll have to pay more to own a device sporting a premium build.
Moreover, all models belonging to the iPhone 12 series are expected to feature 5G connectivity, according to Kuo. Since 5G is still a new technology, the first crop of phones supporting it is pretty expensive. Thus, it’s expected that the iPhone 12’s price will also go up because of the transition from 4G to the next generation of wireless connectivity. Apple could procure 5G modems from Qualcomm, with industry watchers saying it will take the iPhone giant a few years before it has its in-house modems running in future iPhones and iPads.
The iPhone 11 Pro Max in the U.S. starts at $1099, which means the iPhone 12 price could likely cross the $1,200 mark. Since Samsung’s 5G flagships cost around $1,300, it shouldn’t come as a surprise if customers have to pay more to experience 5G connectivity on the upcoming iPhone models.
Since various Android handsets manufacturers have also announced plans to release affordable 5G-handsets next year, it remains to be seen if consumers will be willing to shell out a huge amount for the iPhone 12 range. For the budget-conscious consumers, the company is reportedly planning to release the iPhone SE 2 in H1 2020, but it will not be treated to a 5G modem.
Do you plan to spend on the 5G-ready iPhone 12 or will you settle for a more affordable Android alternative? Let us know by commenting below.
Image Credits: Ben Geskin