IPhone 12 Price Surprise As Apple’s Expensive IPhone Revealed Iphone 12 Pro
In the wake of the . But what may come as a surprise is just how little Tim Cook and his team will add to the premium phone’s price.
Tim Cook, chief executive officer of Apple Inc., speaks about the new iPhone during an event at the ... [+] Steve Jobs Theater in Cupertino, California, U.S., on Tuesday, Sept. 10, 2019. Apple said its TV+ original video subscription service will launch Nov. 1 for $4.99 a month, undercutting the price of rival offerings. Photographer: David Paul Morris/Bloomberg
First of all, it’s worth remembering what improvements the iPhone 12 is expected to carry () which will increase the cost base to Apple.
The big one is 5G. 2019 has seen the launch of both 5G networks and a significant number of handsets that support the faster network speeds have come to market. Apple is taking an approach that will be familiar to many, and arriving late to an innovative part of the market. Although there are extenuating circumstances (including Intel leaving the 5G modem market), the iPhone 12 family will be the first iOS-powered devices to deliver 5G. , not just the top line iPhone 12 Pro Max.
There is also the matter of the screen on the base iPhone 12 model. The iPhone 11 base model shipped with an LCD screen compared to the OLED screen on the Pro and the Pro Max to keep the cost down. That won’t be the case with the iPhone 12, as all models are expected to ship with an OLED screen. (matching the competition).
Finally the camera is going to pick up more lenses and sensors. As well as improving the optics of the actual main camera lens, . Not only will that improve the post-processing capabilities, but open up improvements to the iPhone’s AR capability.
Tim Cook, chief executive officer of Apple Inc., speaks about the new iPhone Pro during an event at ... [+] the Steve Jobs Theater in Cupertino, California, U.S., on Tuesday, Sept. 10, 2019. Apple unveiled the iPhone 11 that will replace the XR and start at $699. Photographer: David Paul Morris/Bloomberg
The price is going to go up to accommodate 5G, new screen technology, and more camera equipment.
The surprise, according to , is that the retail price is only going to rise by $50 per handset, even though the additional elements will raise the build price by up to $100. Although consumers are going to be paying more (and I would expect some of the cost increases to balance out over the range), Apple is also set to squeeze the costs in the supply chain through a mix of economy of scale and harder negotiation to achieve this price.
Although this is going to lift the iPhone 12 above the $700 starting price that the iPhone 11 shipped at, the base iPhone 12 is not going to be the lowest iPhone in the new portfolio. that will make a significant number of concessions to reach a lower price.
No doubt Tim Cook and his team will hope that the headlines about a cheap and new iPhone 9 will distract from the rising cost of the main iPhone line and help boost the overall sales numbers.
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