iPhone 12 supports faster hotspot sharing
A Personal Hotspot allows you to share the cellular data connection of the iPhone with other devices. This means you can use your phone for connecting to the internet no matter where you are, and it's also a more secure option than using free public Wi-Fi.
Although older iPhone models can connect to both 2.4GHz and 5GHz bands, they broadcast Wi-Fi over the 2.4Ghz frequency only.
5GHz frequencies offer faster speeds, but they offer less coverage. A 2.4GHz connection, on the other hand, offers coverage at a longer range but it is comparatively slower. That said, chances are that your phone will be close to the device you want to connect to, and so 5GHz's range limitation shouldn't really be an issue at most times.
By default, all iPhone 12 models support Personal Hotspot over 5GHz Wi-Fi. Since some older devices can only use a 2.4GHz connection and this could lead to compatibility issues, Apple has introduced a new "Maximize Compatibility" option so you can switch to 2.4Ghz when needed.
I confirmed the new Maximize compatibility setting on iPhone 12 switches the hotspot from 5ghz to 2.4ghz. Which matters when using 5G where the speeds can go above the 2.4ghz spec. pic.twitter.com/uzvPyD5lFe— Aaron Zollo (@zollotech) October 22, 2020
When the Maximize Compatibility option is toggled on, the hotspot will broadcast in 2.4Ghz.
Not to sound like a broken record, but the iPhone 12 series is 5G-ready. The US-bound variants also support the faster mmWave networks, so support for 5GHz hotspot sharing is definitely welcome news. Exact speed improvements are yet to be determined.