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Analyst expects no major price increase for next year's 5G iPhones

By Cookie Monster - on 13 Dec 2019, 12:00am

Analyst expects no major price increase for next year's 5G iPhones

Concept renders of the 2020 iPhone models. <br>Image source: MacRumors

Apple is expected to unveil its first 5G iPhones next year, but a well-known analyst believes the company will not significantly increase their prices compared to this year's lineup.

TF International Securities analyst Ming-Chi Kuo claims that Apple will offset the cost of 5G by reducing its supply chain expenses which include dropping upfront non-recurring engineering payment to suppliers of the redesigned metal chassis and frame for the 5G iPhones.

For those who are not familiar with the term, non-recurring engineering payment refers to the one-time cost to research, design, develop and test a new product or component. Kuo expects Apple to bring more of the research and development in house. 

In his investor note released three months ago, Kuo wrote that the 2020 iPhone lineup will have a redesigned metal frame similar to the iPhone 4. The costs of the metal frame and glass case are said to increase by 50 to 60% and 40 to 50% respectively. Other rumoured specs include new display sizes with higher refresh rates, in-display Touch ID and Face ID, more RAM and wider antenna lines. 

Source: MacRumors