People Are Willing to Pay $1200 for Next Year’s 5G iPhone, According to the Latest Survey
Longer upgrade cycles are one of the things that are believed to behind the sluggish smartphone market. However, this stands to change with the 5G standard, as consumers would presumably want to make an upgrade to enjoy faster speeds that will be offered by the next generation of wireless customers. The investment bank Piper Jaffray says that the same is true for iPhone users, based on a recently conducted survey.
While Interest for Apple’s 5G iPhone Appears to Be Increasing, the Same Interest Does Not Seem to Be Replicated for the Company’s Upcoming Lineup
The financial services company’s survey has revealed that Apple consumers are excited about 5G iPhones. In fact, 18 percent of the respondent said that they were willing to pay as much as $1200 for a 5G ready iPhone. The firm’s analyst Michael Olson says that given the fact that 5G marketing is limited right now and prices are expected to be high, this is a relatively high level of interest. He also believes that 5G is being considered as an important feature and interest will likely increase moving forward.
However, 5G-enabled iPhones will not be released until 2020. This year’s lineup will only offer 4G connectivity and on top of that, it isn’t expected to be a significant upgrade over last year’s iPhones. The new handsets are projected to support reverse wireless charging, something which the current high-end Samsung and Huawei phones already offer. The upcoming iPhones will reportedly be fueled by the A13 Bionic chipset and also feature a bigger battery.
Needless to say, the survey shows that the 2019 iPhones don’t really sound exciting and perhaps that’s why Piper Jaffray has observed that consumers aren’t really waiting on it. This will likely translate into lackluster demand for the new lineup but Olson believes the revenue from the services business will make up for it.
iPhones are Apple’s biggest source of revenue but in recent years, demand has shrunk for the company’s handsets. Meanwhile, the services business, which includes Apple Music, App Store, and iCloud, among other things, has steadily gone on to become the second biggest stream of revenue. Apple hopes to double the revenue it earns through services by 2020, which should help mitigate the losses from its iPhone arm.
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News Source: Seeking Alpha