5G iPhones are expected to arrive next year and we’re sure that there are some who might be concerned about price. Apple’s iPhones already do not come cheap and the inclusion of new 5G tech probably as some worried that we could see yet another increase in price, but analyst Ming-Chi Kuo doesn’t believe that the price hike will be too drastic.
According to Kuo, he claims that the inclusion of 5G tech and the accompanying components are expected to increase the production costs of devices by anywhere between $30 to $100, depending on the model. However, despite that, he also believes that Apple is not expected to significantly increase the price for 5G iPhones compared to this year’s lineup.
This is because Kuo claims that Apple will offset the cost of 5G by reducing supply chain expenses, such as by dropping the upfront non-recurring engineering payment to some of its suppliers as Apple is expected to shift more research and development in-house. If true, then a previous report about Apple offering both 4G and 5G models makes sense.
An earlier report by another analyst claimed that Apple might offer the iPhone 12 Pro and Pro Plus in both 4G and 5G models, which we imagine apart from 5G, could be differentiated purely in cost, kind of like the WiFi versus LTE models of the iPad and Apple Watch. Take it with a grain of salt, but hopefully these rumors are true.