Thursday, December 12Always On-point

Apple Insider Reveals Shock New iPhone Price Increases

Apple’s common sense approach (unlike some rivals) to upgrading the iPhone 11 (guide) has resulted in a class-leading phone at a bargain price. But this looks set to change.

In a new report seen by AppleInsider, acclaimed Apple tipster Ming-Chi Kuo has revealed that Apple’s desire to equip every 2020 iPhone with 5G will result in some dramatic price rises.

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“Kuo believes that the main logic-board on the 2020 iPhone 5G will have to grow by about 10% in area to accommodate the new technologies,” explains AppleInsider. “That increase in area will come with a cost – the [mother]board fabrication and some new antenna technology will force a 35% increase in cost to build that component.”

Kuo reveals that the motherboard is one of the most expensive components in an iPhone, with only the OLED display and A-series processor costing more. As AppleInsider points out: “At present, 5G options in shipping phones are adding about an additional $400 to the price of an already expensive flagship phone, like the Galaxy S10.”

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While Apple has a scale of economy like no-other, the company also has profit margins like no-other meaning the decision to equip every new iPhone with 5G is going to hard. I suspect Apple will be able to bring down the current $400 premium (despite using Qualcomm 5G modems like its rivals), but it seems inevitable that iPhone fans will have to shoulder several hundred dollars being added to their next phones.

iPhone 5G Qualcomm mode, 2020 iPhone, Apple iPhone 11, iPhone 11 Pro, iPhone 11 Pro Max, iPhone 12,
Apple will use Qualcomm’s 5G modems in its 2020 iPhones, but the technology currently adds a $400 … [+]QUALCOMM
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FORBES Gordon Kelly
And this is a tough pill to swallow because leaks reveal Apple’s 2020 iPhone plans are some of the most ambitious in iPhone history. Perhaps most head-turning is the return of Touch ID, but there will also be new screen sizes, stunning 120Hz ProMotion displays, long-range 3D cameras and the long-awaited switch to USB-C. Of course, the problem with all this mouthwatering tech is it won’t come cheap either.

Apple is famous for increasing iPhone prices while still retaining massive sales, but its 2020 iPhones may just push customers to the limit. –forbes.com

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