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Kuo: Apple will not increase the prices of the iPhone 5G

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Published on Dec 12, 2019

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Kuo: Apple will not increase the prices of the iPhone 5G

According to some rumors, Apple will launch four iPhone 5G in the autumn of 2020 and the components related to the 5G could increase the production costs of the devices from $ 30 to $ 100 depending on the model, and according to the analyst Ming-Chi Kuo, Apple will significantly increase the price of the iPhone 5G with respect to the range this year.

In a research note TF the International Securities, seen by MacRumors, Kuo says that Apple aims to offset the cost of 5G by reducing the costs of the supply chain, including advance payments to the suppliers of the components for the 5G. The company will aim to contain the costs of the engineering, not the applicant.

Engineering non-recurring refers to the cost of a one-off for the research, design, development and testing of a new product or component. Kuo believes that Apple will shift most research and development within the company.

While the payment of engineering non-recurring in the genre has helped the suppliers to Apple to stay afloat when iPhone sales start to slow down during the spring and summer of each year, Kuo believes that it will be less essential in 2020 and beyond, because Apple should start to release new iPhone models in two different times of the year, in spring and autumn.

Kuo has previously stated that the iPhone 5G will have a metal frame redesigned with a design similar to the iPhone 4, suggesting a return to the edges of most dishes.

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