Apple's 2020 iPhones will be more expensive, but not by much

Apple's 2020 iPhones will be more expensive, but not by much
iPhone 12 Pro concept render

Apple already offers some of the most expensive smartphones on the market, but with 5G network support and more expensive designs reportedly on the way, people began to expect a significant price hike next year. But, as it turns out, this might not happen.

iPhone prices shouldn't go up by too much


Reliable analyst Ming-Chi Kuo believes “Apple will not significantly increase the price” of next year’s iPhone 12 series at launch despite the higher component costs. The analyst in question couldn’t guarantee the same prices as this year but his claims do suggest that the price hike won’t result in an increase of more than $50. 

The added costs that are associated with 5G-related components will reportedly raise the production fee of each device by anywhere between $30 and $100 depending on the model. But rather than making consumers cover the extra, Ming-Chi Kuo says Apple is planning to offset the majority of these costs by reducing its supply chain expenses.

This will be achieved in several ways although the biggest change could involve dropping the usual upfront non-recurring engineering payment to suppliers of the redesigned and noticeably more costly iPhone 4-inspired metal frame that’s expected to grace the phones. Kuo claims the Cupertino-based giant is planning to shift more of this research and development in house. 

Apple’s non-recurring engineering payments have often helped make partnerships financially viable for suppliers during the spring and summer months when iPhone demand has decreased. However, because the company is planning a bi-annual release cycle like most other major brands starting in 2021, this payment won’t be as crucial moving forward.

What Apple's planning for its September 2020 lineup


To refresh your memory, Apple is understood to be developing a series of four smartphones that’ll debut together at an event in September 2020. These will include two standard models and two separate Pro-branded products.

Apple’s cheapest offerings will probably be named the iPhone 12 and iPhone 12 Plus. They’ll feature 5.4-inch and 6.1-inch OLED displays respectively complete with a notch and bezel setup similar to the one found on this year’s iPhone 11 Pro. Also rumored to be part of the package is a dual-camera setup.

As for specifications and features, the Apple A14 Bionic is expected to power both smartphones. It’ll likely be paired with 4GB of RAM and 64GB of internal storage as standard, although Apple could still surprise us all by offering 128GB instead. Changes to the interior layout may result in slightly larger batteries than currently possible, something that’ll offset the added battery consumption that 5G connectivity will bring. 

For those of you interested in the premium models, Apple is expected to brand them as the iPhone 12 Pro and iPhone 12 Pro Max. These will directly replace the existing 5.8-inch iPhone 11 Pro and 6.5-inch iPhone 11 Pro Max and introduce slightly larger 6.1-inch and 6.7-inch displays. The OLED technology will reportedly be maintained and paired with slimmer bezels and a redesigned notch. Additionally, the triple-camera setup used on this year’s devices looks set to benefit from a new 3D sensing system that’ll be more powerful than Face ID. 

Like the regular iPhone 12 models, Apple’s iPhone 12 Pro devices will arrive powered by the upcoming A14 Bionic chipset. Rumor has it the company is finally planning a switch over to a 6/128GB standard configuration, but this was also expected for the iPhone 11 Pro lineup so there’s certainly no guarantee. Bigger batteries are also expected alongside 5G connectivity.

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20 Comments

1. User123456789

Posts: 1370; Member since: Feb 22, 2019

No phone should cost more than $1000. Not counting fact Apple charges $1800, $2200, $2500 out of USA.

5. vgking9699

Posts: 229; Member since: Mar 01, 2019

That’s not Apple, that’s those countries adding tariffs, don’t blame Apple for your greedy government

7. pooma unregistered

apple fanboys are the worst. why you defending apple for charging even $1000?

9. DBozz

Posts: 156; Member since: Sep 19, 2019

If u feel thats bad then Get ready for mac pro cleaning cloth that apple soon gonna put in their site with 199$ apple price...!

14. mackan84

Posts: 700; Member since: Feb 13, 2014

As long as people buy what they think is the best for +$1000 dollars that’s where they set the bar. But even Apple knows they need to offer a smartphone at around $700. Most people don’t see why they would pay $300-400 more for the other options. I went from iPhone X to XR to 11. Don’t miss OLED and definitely don’t miss that measly 2x zoom.

2. Tipus

Posts: 913; Member since: Sep 30, 2016

Every 2020 phone will be more expensive

3. ALMBO6

Posts: 197; Member since: May 28, 2018

"Apple's 2020 iPhones will be more expensive, but not by much", as if they were not waaay too expensive already!

4. Whitedot

Posts: 895; Member since: Sep 26, 2017

As if current margins were not enough.

6. vgking9699

Posts: 229; Member since: Mar 01, 2019

Current profits on iPhones are actually down from what they used to be You gotta understand there’s much more money besides the simple cost of parts lol Apple spends the most money on marketing, R&D and on paying all those thousands of employees in their physical stores where as all others phones are typically just in third party stores that doesn’t cost the manufacturers much compared to Apple

11. Whitedot

Posts: 895; Member since: Sep 26, 2017

As far as I know Apples R&D wasn't the highest. Huawei's was. Even at current margins units don't seem to be selling better anymore. Admittedly Apple more and more rely on the services revenue there for. I don't know how Apple convince people another hike in price for high emd models. We have to take into account that high end smartphone market was suffering for years too.

12. Subie

Posts: 2452; Member since: Aug 01, 2015

Amazon, Alphabet, Volkswagen, Samsung, and Microsoft are all ranked above Huawei in regards to R&D spending. https://www.ideatovalue.com/inno/nickskillicorn/2019/08/top-1000-companies-that-spend-the-most-on-research-development-charts-and-analysis/

13. Whitedot

Posts: 895; Member since: Sep 26, 2017

Nice. Seems like only Samsung spending more Huawei in smartphone industry right now.

15. joshuaswingle

Posts: 757; Member since: Apr 03, 2018

Those R&D spending figures are pointless. Samsung competes in an endless list of industries where Huawei and Apple aren't present. Likewise, Huawei is a huge player in the telecom industry and naturally spends a huge amount of its R&D money on 5G at the moment. There's no way of comparing these three companies directly when it comes to the smartphone business. Simply comparing the total R&D budget for each one is completely unfair. That's only useful if you want to create a certain narrative. By the logic you guys have just used, Amazon spends more R&D money on its Fire tablets and Alexa devices.

16. Whitedot

Posts: 895; Member since: Sep 26, 2017

We R&D in smartphone industry context. Having said that neither of us including you have figures that would represent R&D correlated directly mobile industry, smartphone hardware and so on. Still, it gives an indication where certain OEM stands at. Talking about Amazon R&D I would not be so quick to rush such an example of Fire tablets. It's pointless, there is hardly any achievement there. Alexa is another thing, software is very well implemented. Still thanks for reminding us about certain R&Dd subtleties.

19. joshuaswingle

Posts: 757; Member since: Apr 03, 2018

That’s the thing, it doesn’t give any indication as to where OEMs stand at. How on earth can you compare the R&D costs of the conglomerate that is Samsung with those of Apple which competes in a very limited number of industries?

20. Whitedot

Posts: 895; Member since: Sep 26, 2017

You can actually by various acquisitions and investments in technologies, patents and development's. But yes you right we cant have straightforward feagures.

8. wickedwilly

Posts: 778; Member since: Sep 19, 2018

Apple R&D spend is quite low relative to other leading OEM’s and from the results less effectively. Apples iPhones have been following and copying for many generations, innovation is not Apples strongpoint in the Phone market.

10. LEEDAQ

Posts: 215; Member since: Aug 07, 2018

well, if a phone company supports and updates its products for more than 4 years, then I'd say it's worth it

17. PhoneCritic

Posts: 1382; Member since: Oct 05, 2011

One thing I guess they, the analysts, are not factoring to the $50.00 price point is the 15% US tariff that goes in effect that will possibly bring that 50 bucks up to over maybe 70 bucks or more... This is going to be interesting if that happens; since the US has a roaring economy will people still be willing to pay over $1200 for any phone? I guess we will find out but like its been pointed out many times people do what they want with their resources even if it is not a good decision.

18. looneyhouston

Posts: 43; Member since: Apr 10, 2014

I can see it now.... Going into T-mobile on a JOD plan and asking to purchase the iphone 12 and they ask for $700 down. PSHH please.

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