The iPhone 12 will come out in a little less than a year but already, Apple’s plans are unfolding little by little. It is now certain that the 2020 models will have 5G and many are afraid of a surge in prices, especially if the brand has a new design for its upcoming smartphones. Yes, the 2020 iPhone will be more expensive, but “not too much” according to a reputable analyst.
The iPhone 11, 11 Pro and 11 Pro Max have been out for just two months, but all eyes are already turned to their successors. By 2020, Apple would launch no less than 4 iPhone, all 5G compatible. They would also have a new metal design inspired by the design of the iPhone 4. So many factors are here that could result in a significant increase in prices.
According to the well-known analyst Ming-Chi Kuo, components related to these developments will cost between $30 and $100 depending on the models. However, Apple does not intend to transpose these costs to final prices. At least, not in full.
iPhone 12: a “reasonable” price increase in 2020
How will Apple manage to absorb the rising costs associated with iPhone 12? Kuo says this will be done by cutting back on supply chain spending, primarily on non-recurring charges to suppliers. In fact, in addition to paying the unit cost of each component, the firm pays a fixed amount corresponding to engineering and R & D costs. Non-recurring expense payments have often helped make partnerships more financially viable for suppliers, especially in the spring and summer, when iPhone demand drops.
However, given that Apple is now considering a bi-annual cycle for the iPhone. Kuo explains that Apple can more easily convince its partners to reduce the amount of these upstream charges and to bet on the volume of flows over time in compensation. The new note from the analyst confirms that the new chassis and materials of the next iPhone will cost much more to Apple. The design promises to be premium. Added to this is the arrival of 5G which will further increase the cost of the iPhone 2020. However, a drastic rise in prices is not in the program.