All new technologies are expensive. Therefore, all modern 5G smartphones that came out to date, invariably significantly more expensive devices with LTE, belonging to the same line. Still, in order to equip the smartphone with support of networks of the fifth generation, is required not only to establish in its case-compatible modem, which is itself rather expensive, and completely rework the internals of the gadget. However, Apple decided to raise the price hurl – not her way, came to the conclusion that if not reduce costs, at least to prevent their rapid growth.
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Analyst Ming-Chi Kuo, perhaps the most informed insider on the subject of Apple, which reported that 12 iPhone Pro 5G will cost 20-25% more iPhone 11 Pro, changed its forecast. According to him, the upcoming novelty will be really expensive smartphones current generation because of the support networks of the fifth generation, however, the price increase will not be catastrophic. Most likely, the difference with existing models will be in the range of 30-100 dollars, which, given the previous forecast, is quite tolerable.
Price iPhone 12 5G
The reason for this decline is the desire by Apple to keep the price of the new iPhone as close as possible to the flagship 2019 model year levels. Despite the fact that the cost of production of the iPhone 12 Pro with support for fifth generation networks will be the same 30-100 dollars, in Cupertino have decided that I’ll just absorb them, and then compensate for cost optimization, laying down on the production of other goods. But what and, most importantly, how – is still a secret. Most likely, Apple still does not know what will save, what’s more, according to Kuo, to deal with compensation in the company want to start at a later date.
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But the cost of the upcoming iPhone will affect not only 5G-compatible modem, but a number of other factors. If you believe the rumors that next year Apple is going to change the design of the new smartphones by betting on a more severe appearance with chopped faces in the style of iPhone 4. According to Ming-Chi Kuo, the case is much more expensive because it will include outputs for 12 groups of antennas, to enable 5G, and the additional fortifications, so as not to lose structural strength.
Why Apple does not raise the price of the iPhone 12
Apple’s decision not to raise the price of the iPhone with support for 5G is quite logical, though, and quite unexpectedly. Still, Apple’s never tried to absorb any costs, preferring to fully assign them to users. Because of this often the price of branded products of the company, many thought it too high. But now everything has changed. Most likely, Apple analysts have realized that if you raise the price of the iPhone, the smartphone will be harder to compete against the likes of Chinese manufacturers, which already contributes to the release of budget models with 5G for less than $ 300.
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In fact, the desire to keep the price of the flagship iPhone as low as possible says very much. Obviously, Apple could afford to sell a smartphone in its base configuration for $ 1,200. But in this case she is risking to drop the demand for the novelty so that to compensate for his increased earnings, as she had done before, it will not work. Therefore it is better to take some of the costs now, but back then, because to prevent the falling profitability of the smartphone business, Apple just can’t.