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iPhone 12 Might Hike Average Price By $162 Due To 5G, New Frame

Nov 3, 2019
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Cupertino tech giant Apple launched the iPhone 11 lineup earlier this year. The smartphones are an iterative upgrade in a lineup that's lost its penchant for design lately. While Apple had established a two year waiting period for upgrading the iPhone's form, this stopped when the company introduced the iPhone 6 and iPhone 6 Plus. Now, all signs do point towards a design refresh on next year's iPhone 12 lineup, which, despite being 10 months away, has already started to generate speculation. Today we've got more talk for the smartphones. Take a look below for the details.

iPhone 12 Prices Speculated To Rise By 1,000 Chinese Yuan On Average Due To 5G & Other Cost Increases

The big miss on this year's iPhone lineup is 5G. Apple's caught in a mind due to having worked with Intel on developing cellular modems. Now that the Santa Clara chip giant's 5G plans have been scrapped, Apple's left with no other choice than to go with Qualcomm; a company with whom Apple's had plenty of encounters in court.

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However, the need to gain an early advantage with 5G is prescient. While the next-generation cellular network hasn't commercially launched in the US, this isn't the case worldwide. China's three state carriers have officially launched 5G, and in doing so, have deprived Apple of the opportunity to capitalize on early adopters of the network.

Now, as rumors of iPhone 12 5G pick up, we're starting to see speculation for the devices on China's social network Weibo. Apple's iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max start at 5.499, 8,699 and 9,599 Chinese Yuan respectively. The iPhones 12 might raise this by 1,000 Yuan on average, with the iPhone 12 believed to have a 6,000+ Yuan starting price. Its Pro variants might have starting prices exceed 9000 and 10,000 Yuan.

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iPhone 12, iPhone 12 Pro & iPhone 12 Pro Max Might Have Starting Prices Exceed 6,000, 9,000, and 10,000 Chinese Yuan

Additionally, the report on Weibo that we've come across today doesn't only list 5G as the reason behind the iPhone's price increase. We've come across several rumors of an iPhone 12 redesign so far. These suggest that apple will revert back to the more serious look of the iPhones 5 and 5s. A report from TF International's Ming-Chi Kuo that surfaced in September stated:

We predict that the new 2H20 iPhone design will change significantly [...] The metal frame and the front and rear 2/2.5D glass are still used, but the metal frame surface will be changed to a similar design to the iPhone 4, replacing the current surface design.

It's now believed that this frame change will also contribute to a price increase for the iPhone 12 lineup. Apple's iPhone 11 lineup has a stainless steel frame, which is among the sturdiest frame materials in the smartphone market right now. It's resistant to scratches, as confirmed by JerryRigEverything, and given that other flagships (including the Note 10 Plus) have aluminum frames, the iPhone 11 lineup has the better and more premium build.

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As per Techinsights, non-electronic materials for the iPhone 11 Pro Max cost Apple $61 per device. This cost does not include overheads including shipping, designing and other time dedicated by the company to ensure that materials work in sync with each other on its premium smartphones. 1000 Chinese Yuan equals $166, but iPhones aren't priced equally across the globe with factors such as retailer margins coming in play in several countries.

Speaking of which, Apple has sweetened the pot for retailers in China for the iPhone 11 lineup. Since the company will be eager to make an impact with the iPhone 12 5G next year, it's also likely that the speculated Yuan price hike also takes into account higher retailer margins. Thoughts? Let us know what you think in the comments section below and stay tuned. We'll keep you updated on the latest.

Products mentioned in this post

iPhone 11
iPhone 11
USD 659.99
iPhone 11 Pro Max
iPhone 11 Pro Max
USD 0

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