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

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.