Apple iPhone 12 price will be key to sales growth in H2 2020: report

Apple iPhone 12 price will be key to sales growth in H2 2020: report
The Apple iPhone 12 is not even here yet but the outlook is already positive mostly. Samsung, which currently leads the 5G smartphone category according to most estimates, is expected to slide to the third position in H2 2020 following the release of the first 5G-enabled iPhones. China, in particular, will be a proxy for assessing global leadership. The Chinese market is pretty competitive and thus, as a new DigiTimes report points out, the price will be a huge determining factor for the success of the iPhone 12 in the second half of the year.

Apple is a little late to the party. The first wave of 5G-ready phones arrived in 2019 and they were high-end devices with plump price tags. That's no longer the case, thanks in part to chip makers Qualcomm and MediaTek who have rolled out 5G-capable mid-range SoCs that have made affordable 5G phones possible. So, it will be interesting to see how Apple prices the iPhone 12 to boost sales. 

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iPhone 12 starting price might not be as low as predicted earlier

According to earlier rumors, the price will start at $649 for the 5.4-inch iPhone 12. The 6.1-inch iPhone 12 Max will likely go for $749 and the iPhone 12 Pro with the same screen size is expected to retail for $999. The highest-end model, the iPhone 12 Pro Max, will probably set you back $1,099.

In China, Apple will face stiff competition from Huawei, which currently leads the market by a wide margin, as well as other local players such as Vivo, Oppo, and Xiaomi. Samsung's share in the country is nothing to write home about. 

China's government is keen on stimulating the domestic market by encouraging the growth of the 5G industry. Local players will try to price each other out of the market by releasing more entry-level 5G handsets and this could be a threat for the iPhone 12. 

While most analysts expect the first 5G iPhone to generate a super cycle for Apple in 2020 and 2021, one forecast is that the new models will fall short of a super cycle.  Qualcomm recently announced its first series 600 5G chipset, the Snapdragon 690 and it will power sub $500 phones. MediaTek has also launched a couple of Dimensity silicon that aim to make 5G more accessible.

Per a more recent report, the standard iPhone 12 might retail for $749, which is $50 more than the introductory iPhone 11 model. Apparently, the reason behind the price hike is the inclusion of 5G connectivity and OLED panels. On top of that, the new models will seemingly not include a charger and EarPods

So, while the iPhone 12 will probably do well in the US, it's success in other markets, particularly China, will be largely dependent upon the price.

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