Apple’s 5G iPhones in 2020 Won’t See Major Price Increase: Kuo

Will Apple increase the price of its 5G-equipped iPhones in 2020? According to TF International Securities analyst, Ming-Chi Kuo, he believes a major price increase isn’t coming next year, as Apple plans to offset the cost through other means.

According to the research note seen by MacRumors, “Kuo said Apple instead aims to offset the cost of 5G by reducing its supply chain expenses, potentially including dropping its upfront non-recurring engineering payment to suppliers of the redesigned metal chassis and frame for 5G iPhones.”

Kuo predicts Apple will reallocate some of its research and development in house, instead of paying suppliers the one-time engineering cost to test and develop new components.

Apple’s iPhone 11 starts at $979 CAD, while the iPhone 11 Pro starts at $1379 in Canada. Prices didn’t increase this year compared to last year, but in the case of the iPhone 11 (the iPhone XR successor), prices dropped $50 versus 2018.

Last week, Kuo released his 2020 iPhone predictions, noting five new models are expected in 2020, while 2021 will see an ‘iPhone SE2 Plus’ and a new flagship model that won’t have a Lightning port for the first time.