Kuo: Next Year's 5G iPhones Won't Likely To Have Major Price Increases

Top Apple analyst Mng-Chi Kuo is out with his latest research report, saying that the company will unlikely to have a major price increase, despite it will include a new metal frame design and 5G support.

The report pointed out that Apple may stop paying one-time non-recurring engineering (NRE) costs for metal frame/chassis manufacturers for the iPhones that will be released in the second half of 2020 to reduce development costs.

Among the 5G iPhone parts, the chassis is regarded as one of the most significant causes that the cost of manufacturing will go up, thus, to reduce the case development cost, the report suggests that Apple may eliminate the NRE.

Kuo has previously predicted that Apple will launch 4 new iPhone models supporting 5G in the second half of 2020, and release models supporting Sub-6GHz or Sub-6GHz + mmWave for various markets. Compared with 4G models, the report predicts that the expense goes into support Sub-6Ghz and Sub-6GHz + mmWave will increase by $30-50 and $80-100, respectively.

Although the expense of making 5G iPhones has increased, to ensure the growth of iPhone shipments Kuo believes that Apple will not substantially raise the price of new iPhones in the second half of 2020, which means that the Cupertino tech-giant will shift costs to the supply chain as much as possible.

Apple is expected to launch four new iPhones next fall, including a 5.4-inch model, two 6.1-inch models, and a 6.7-inch edition. These four models are anticipated to be built with OLED displays, 5G support, and an iPhone 4-like metal frame, plus a slightly large battery. The two higher-end models will also have higher-end display technology (120Hz refresh rate screen?) and will be mounted with a 3D sensing ToF camera.

iPhone Concept by Ben Geskin

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