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In connection with the upcoming generation of iPhones for 2020, there is constant talk of 5G support. Four models that Apple plans to introduce next year should work on new generation networks. Along with the new components, the production price of iPhones is also expected to increase. However, analyst Ming-Chi Kuo assures that customers will feel the increase in prices only minimally.

The production price of upcoming iPhones will increase by $5 to $30, depending on the model, due to the new 100G modems. We could therefore expect a similar increase in the final price for customers. According to Ming-Chi Kuo, however, Apple will partially cover the increased costs out of its own pocket, and the new iPhone 12 should therefore cost essentially the same as this year's iPhone 11 and iPhone 11 Pro (Max).

iPhone 12 Pro concept

In addition, Apple appears to have taken other measures to reduce the costs associated with the production of iPhones. While until now the company relied on external companies and their engineers for the development of some new elements, now it procures everything necessary itself. Research, design, development and testing of new products or components will now take place directly in Cupertino. Ming-Chi Kuo believes that in the future Apple will move the development of most new products under its own roof, thereby significantly reducing its dependence on companies mainly from the Asian market.

Next year, however, the production price of iPhones will not only be increased by the new 5G modem, but also by the new chassis and metal frame, which should refer to the iPhone 4. Apple will return to the flat edges of the phone and partially combine them with the existing design. In the end, the iPhone 12 should offer a premium design, also in terms of the materials used, which will increase production costs.

Kuo also confirms the information of another analyst that Apple will introduce new iPhones twice a year - basic models (iPhone 12) in the spring and flagship models (iPhone 12 Pro) in the fall. The premiere of the phones will thus be divided into two waves, which will largely help to increase the company's financial results during the third quarter of the year, which is usually the weakest.

Source: Macrumors

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