Apple’s common sense (unlike some competitors) when updating the iPhone 11 (manual) has led to a first-class phone at an excellent price. This should change, however.
In a recent AppleInsider report, the well-known Apple spokesman, Ming-Chi Kuo, has made it clear that Apple’s desire to equip each 5G iPhone with 5G will lead to a dramatic price increase.
“Kuo believes that the iPhone 5G 2020 motherboard needs to grow by approximately 10% to accommodate new technologies,” AppleInsider said. “This increase in the area will be costly: the production of the [mother] board and some new antenna technologies will increase the construction cost of this component by 35%.”
Kuo reveals that the motherboard is one of the most expensive components on an iPhone, only the OLED screen and the A-series processor cost more. As AppleInsider points out, “5G options on prepaid phones are currently increasing the price of an expensive flagship phone like the Galaxy S10 by approximately $ 400.”
While Apple has unmatched profitability, the company also has profit margins, which means that the decision to equip each new iPhone with 5G will be difficult. I suspect that Apple may reduce the current premium of $ 400 (although Qualcomm 5G modems will be used as its rivals), but it seems inevitable that iPhone fans spend several hundred dollars on their next phones I need to recharge.
And this pill is hard to swallow, as leaks indicate that Apple’s iPhone plans for 2020 are among the most ambitious in the history of the iPhone. The return of Touch ID will be the biggest attraction, but new screen sizes, impressive 120 Hz ProMotion screens, long-range 3D cameras and the highly anticipated switch to USB-C will also be available. The problem with all this delicious technology is, of course, that it is not cheap either.
Apple is known for raising iPhone prices while maintaining high revenues, but its 2020 iPhones could only take its customers to their limits.