Why the New iPhone 12 Models Will Be Apple's Most Premium Smartphones Yet
Explore the key factors driving the price increase of the upcoming iPhone 12 series and what sets them apart from previous models.
Apple has decided to maintain stable pricing for its latest iPhone models this year, keeping them in line with previous releases at launch. However, this pricing strategy is expected to change next year, with all iPhone 12 variants likely to come with a noticeable price hike compared to the iPhone 11, according to renowned industry insider Ming-Chi Kuo.
The price increase is attributed to two main factors. Firstly, the integration of 5G modems significantly raises production costs. Apple is anticipated to source these advanced modems from Qualcomm, contributing to the higher expense.
Secondly, Apple is adopting a new manufacturing process involving composite materials that form the foundation of the devices' metal frames. This innovative design approach, reminiscent of the iPhone 4’s style, is expected to add to the overall cost due to its complexity and premium build quality.
While the iPhone 12 series will feature numerous enhancements, the new chassis design and 5G modem integration are the primary contributors to the increased price point. For context, the current iPhone 11 Pro Max starts at around $1,099 in the United States, whereas the iPhone 12 is projected to exceed $1,200.
Comparatively, flagship 5G smartphones from Samsung begin at approximately $1,300, making the anticipated price adjustment for the iPhone 12 a reasonable market response. What are your thoughts on these upcoming changes?
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