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Price tag No. 12: Apple's next iPhone gets really expensive, arguments sought

One notices it again and again: the time when well-heeled (or with a mobile phone gag contract punished and would-be rich) proudly banged the iPhone on the table, so that the environment may freeze with awe, are long gone. Thank God. Of course, there are still models that the customer likes to show, as long as the properties also justify the production price. That's why Apple seems to believe that a few upgrades to its next-generation phones deserve a price increase.

The news comes from analyst Ming-Chi Kuo, who expects the price of the upcoming iPhone 12 to rise again for two reasons. There are camera upgrades on the one hand and a new, more complex cooling solution to control the 5G modem temperatures, which could significantly increase the cost of the iPhone 12 lineup. Or. which could be used as a (sham) argument for this, because the margins at Apple are not really tiny.


At the time, Apple had loosely brushed aside the shame of the 1,000 Euro sound barrier on price tags and broke through this psychologically important barrier with a gesture of nonchalance. However, this monetary megalomania has not only left its mark on Apple (because companies such as Google or Samsung have happily followed suit), as the chain of argument for this price craze is becoming ever thinner and more fragile. You don't have to understand that any more and so the iPhone 11 remained at the old level (for now) despite the faster processor and better camera.

However, this is expected to change as early as next year, as the price of the iPhone 12 will most likely be higher than the price of the iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. In an interview with TF International Securities, Kuo had reportedly said that he expected the price of the iPhone 12 to rise due to a new processing method and the use of special compositematerials for the new metal frame structure. Earlier, Kuo reported that the design of the iPhone 12 could be similar to that of the iPhone 4, but this could lead to a significant increase in the cost per unit.

It shouldn't be a surprise that Apple will pass this on to consumers in the form of a price increase, so that as a loyal Apple customer you would have to reach even deeper into your pocket for your premium device. In addition, all models in the iPhone 12 series are expected to have a 5G modem, according to Kuo. Since 5G is still a new technology, the manageable selection of phones that support 5G is also quite expensive.

As a result, the price of the iPhone 12 is expected to rise significantly, also due to the transition from 4G to the next generation of wireless transmission. Apple could use 5G modems, for example Industry observers are confident it will be several years before the iPhone giant has implemented its in-house modems in all future iPhones and iPads. The iPhone 11 Pro Max starts at over 1200 euros, which means the price of the iPhone 12 could well exceed the 1300 euro (or one hundred more) mark. Since Samsung's 5G flagships aren't cheaper at the moment, it shouldn't come as a surprise that Apple customers will pay more, even with the argument that 5G is driving up prices.

And what do the competitors do? However, with several Android phone makers announcing their own plans to launch affordable 5G smartphones next year, it remains to be seen whether consumers will be willing to buy an even more expensive device from the iPhone 12 lineup on a larger scale. For price-conscious buyers, Apple is reportedly planning to launch the iPhone SE 2 in the first half of 2020 – without a 5G modem – meaning an entry point for not quite as rich people who still want to place their smartphones visibly on the table.


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About the author

Igor Wallossek

Editor-in-chief and name-giver of igor'sLAB as the content successor of Tom's Hardware Germany, whose license was returned in June 2019 in order to better meet the qualitative demands of web content and challenges of new media such as YouTube with its own channel.

Computer nerd since 1983, audio freak since 1979 and pretty much open to anything with a plug or battery for over 50 years.

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