The rumors surrounding the next iPhone generation show no signs of abating. Now the well-known TF International Securities analyst Ming-Chi Kuo has spoken out on the subject of pricing in relation to the iPhone 5G series.
In a new note to investors, Kuo shed more light on the topic of pricing. Although the devices will be of higher quality due to their new design and 5G support is not particularly cheap, there will reportedly not be a major price increase. According to his information, the production costs of the devices will increase by around $30 - $100 due to 5G integration. Nevertheless, Apple is not planning a significant price increase - according to Kuo. As a reminder:
- iPhone 11 starting price: 799 euros
- iPhone 11 Pro starting price: 1,149 euros
- iPhone 11 Pro Max starting price: 1,249 euros
According to the analyst, Apple would rather pursue a plan to offset 5G costs by reducing general costs to suppliers. At this point, according to the report, the one-time payment to suppliers, which would be due for the new metal frame, among other things, would be eliminated. This payment usually covers one-time engineering of new components in full - ie: research, design, development and testing. Kuo believes that Apple was able to do most of this itself.
Two iPhone events per year
The TFI analyst even predicts that this type of cost will be completely eliminated in the future, as Apple is actually planning two iPhone events per year. This would also ensure more sales for the individual suppliers who were previously dependent on this one-off payment. For example, cheaper models are planned for the first half of the year, while the premium devices will appear in the second half of the year. It remains to be seen whether his prediction will be correct. Many observers believe that there will be a price increase, as the devices will have a new and, above all, higher-quality design with significantly more expensive technology. So if Kuo is right, some fans will be happy. (Photo by Eremin / Bigstockphoto)
