Kuo: Next Year's 5G iPhones With Redesigned Metal Frame Won't Have Major Price Increase

[MacRumors]

Apple is rumored to launch four 5G-enabled iPhones in fall 2020, and while 5G-related components could raise the production costs of the devices by $30 to $100 depending on the model, analyst Ming-Chi Kuo believes Apple will not significantly increase the price of 5G iPhones compared to this year's lineup.

iPhone 11 Pro and iPhone 11 Pro Max models start at $999 and $1,099 respectively in the United States, while the iPhone 11 starts at $699.

In a research note with TF International Securities, viewed by MacRumors, Kuo said Apple instead aims to offset the cost of 5G by reducing its supply chain expenses, potentially including dropping its upfront non-recurring engineering payment to suppliers of the redesigned metal chassis and frame for 5G iPhones.

Non-recurring engineering refers to the one-time cost to research, design, develop, and test a new product or component. Kuo believes Apple will shift more of this research and development in house.

While the non-recurring engineering payment has typically helped Apple's suppliers stay afloat when iPhone sales start to slow during the spring and summer each year, Kuo believes it will be less essential in 2020 and beyond since Apple is expected to start releasing iPhones on a biannual basis going forward -- lower-end iPhones in the spring and higher-end iPhones in the fall.

Kuo has previously claimed that 5G iPhones will sport a redesigned metal frame with an iPhone 4-like design, suggesting a return to flatter edges. In today's note, he said both the chassis and frame on 5G iPhones will cost Apple significantly more to manufacture, perhaps pointing towards an even more premium design.

Article Link: Kuo: Next Year's 5G iPhones With Redesigned Metal Frame Won't Have Major Price Increase

 

[fmcshan]

The iPhone 4 design is still perhaps the best to date. Anyone else agree?

 

[calzon65]

I would not be surprised if Apple eventually finds a way to raise the price … something like … the charger, cables, box and yet another dongle are all extra costs if you want them. 😆

 

[Freida]

I think instead of biannual they should do biennial. The tech has matured so having a new iPhone every 2 years would do much better for everyone. Also less waste overall

 

[tnsmart]

The iPhone 4 design is still perhaps the best to date. Anyone else agree?

The iPhone 4 was my first iPhone and I loved the all-glass design. However, I thought that my 5s was the optimal size.

 

[JPack]

"The metal frame and the front and rear 2/2.5D glass are still used, but the metal frame surface will be changed to a similar design to the ‌iPhone‌ 4, replacing the current surface design."​

In other words, from polished stainless steel to matte stainless steel. Not flat edges.

 

[mag33]

I think instead of biannual they should do biennial. The tech has matured so having a new iPhone every 2 years would do much better for everyone. Also less waste overall

And less throttling of older phones!

 

[justperry]

The iPhone 4 design is still perhaps the best to date. Anyone else agree?

Back then it was an extremely nice design, it still is fairly nice now compared to lots of phones, but I do think the X/Xs and 11 are more up to date design wise, I also prefer the (almost) all display front.
The only negative on the last few generations is the camera bump on the back, I rather see it go away.
I can live with it though, no biggie, mine is in a casing.

 

[SW3029]

MacRumors commenters won't like this at all. What will they have left to complain about?

 

[fokmik]

This is how you do it...not like android phones with S10 and S10 5G and S10 plus and so on...with an increase just because 5G

 

[44267547]

As long as it doesn’t increase the weight of the iPhone, I don’t care what Apple uses for a metal band. The 316 L stainless bands that Apple uses currently for the iPhones are aesthetically nice, but it only increases the weight. With an ‘all glass design’, and you add in stainless bands, it’s a pretty hefty phone when you consider the Pro. I’m not complaining, just a valid observation. Even the slightest differential of weight makes a difference with how large these phones are today.

 

[Jmacman78]

MacRumors commenters won't like this at all. What will they have left to complain about?

Oh, we've got plenty to complain about! 🤣

 

[MAFcz]

Not major price increase.In Apple logic 100$ at least...

 

[Woodcrest64]

Someone please correct me, but if all this is just a different metal frame how is this really a "major" design change and some size differences like the 5.4" & 6.7"? The only other thing I can think of is they get rid of the notch.

Not attacking Apple but they really can only do so much with a slab of glass unless they fold it which I'm not interested in with the current technology.

 

[jimbobb24]

The iPhone 4 design is still perhaps the best to date. Anyone else agree?

It was gadget of the Decade in the Verge.

https://www.theverge.com/2019/12/10...ist-roundup-apple-iphone-tesla-amazon-samsung

 

[EugW]

1. It should have NO price price increase. They are already very expensive.
2. The Pro models should come with 128 GB for entry level, to justify that high Pro pricing.

But alas, my prediction is they won't raise the storage minimum until 2021, since people will pay those prices to get 5G.

 

[mag33]

1. It should have NO price price increase. They are already very expensive.

This. How can they justify asking more and more money every year? That's just criminal.

 

[justperry]

As long as it doesn’t increase the weight of the iPhone, I don’t care what Apple uses for a metal band. The 316 L stainless bands that Apple uses currently for the iPhones are aesthetically nice, but it only increases the weight. With an ‘all glass design’, and you add in stainless bands, it’s a pretty hefty phone when you consider the Pro. I’m not complaining, just a valid observation. Even the slightest differential of weight makes a difference with how large these phones are today.

I think iPhones with a SS band are less prone to glass damage compared to ones made of aluminium.

 

[profets]

With all fairness to Kuo, I feel like pricing, naming, marketing isn't really known outside of a small circle at Apple. I wonder how/why he speculates on this.

The iPhone 4 design is still perhaps the best to date. Anyone else agree?

For me, across all iPhones the 4 and the X were really the best designs ever and really stood apart from their predecessors.

 

[RevTEG]

This is how you do it...not like android phones with S10 and S10 5G and S10 plus and so on...with an increase just because 5G

The article said no “major” price increase. I’m sure Apple will find a way to increase.

 

[ElectricPotato]

How can they justify asking more and more money every year? That's just criminal.

It's not criminal if people willingly hand over any amount requested.

 

[MoreRumors?]

I like the iPhone 4 design, however, some may perceive it to be thicker and heavier. The flat metal edge give it a durable and solid feel when holding it. As for small increase, we shall see when it i announced next year.

 

[justperry]

This. How can they justify asking more and more money every year? That's just criminal.

AFAIK iPhone 11 pro prices are the same as last year Xs prices.
That is, in the States, in Europe they got more expensive.

 

[FlyingDutch]

The iPhone 4 design is still perhaps the best to date. Anyone else agree?

Yes, but I’m not sure it would be fine on a much larger phone...
How comfortable it would be ?

 

[Quicksilver867]

I was thinking sapphire glass would be nice, but GT Advanced Technologies and that whole story came to mind.

A modernized take on the iPhone 4 design would be very cool. Full-face display w/reduced notch, improved FaceID, reintroduction of TouchID, 5G, increased battery life, maybe USB-C.