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

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.

fouriphones2020
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.

Related Roundup: iPhone 12
Buyer's Guide: iPhone 12 (Caution)
Related Forum: iPhone

Top Rated Comments

fmcshan Avatar
22 months ago
The iPhone 4 design is still perhaps the best to date. Anyone else agree?
Score: 51 Votes (Like | Disagree)
Freida Avatar
22 months ago
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 :-)
Score: 20 Votes (Like | Disagree)
EugW Avatar
22 months ago
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.
Score: 18 Votes (Like | Disagree)
mag33 Avatar
22 months ago

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.
Score: 13 Votes (Like | Disagree)
MAFcz Avatar
22 months ago
Not major price increase.In Apple logic 100$ at least...
Score: 11 Votes (Like | Disagree)
tnsmart Avatar
22 months ago

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.
Score: 9 Votes (Like | Disagree)

Top Stories

REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
a15 chip

iPhone 13 and Redesigned MacBook Pro Chip Production Hit With Gas Contamination

Friday July 30, 2021 5:44 am PDT by
The most important TSMC factory that manufactures Apple's chips destined for next-generation iPhone and Mac models has been hit by a gas contamination, according to Nikkei Asia. The factory, known as "Fab 18," is TSMC's most advanced chipmaking facility. TSMC is Apple's sole chip supplier, making all of the processors used in every Apple device with a custom silicon chip. Industry...
Apple watch series 5 new case material made of titanium 091019

Titanium Apple Watch Series 6 Models Currently Widely Unavailable

Sunday August 1, 2021 6:21 am PDT by
Models of the Apple Watch Series 6 with titanium cases part of the "Apple Watch Edition" collection is currently widely unavailable for pick-up in several of Apple's retail stores in the United States and is unavailable entirely for delivery in major markets. Noted by Bloomberg's Mark Gurman in the latest edition of his "Power On" newsletter, titanium models of the Apple Watch Series 6,...
iPhone 13 Always On Feature

iPhone 13 to Bring Over a Major Feature From the Apple Watch

Wednesday July 28, 2021 2:21 am PDT by
Apple's upcoming iPhone 13 lineup will feature an always-on display akin to the Apple Watch Series 5 and Series 6, according to recent reports. In his weekly Power On newsletter, Bloomberg journalist Mark Gurman, who often reveals accurate insights into Apple's plans, said that the iPhone 13 may feature an Apple Watch-inspired always-on mode. The Apple Watch Series 5 and Apple Watch...
apple rtp land

Apple Preparing to Occupy 200,000 Square Feet of Temporary Space Ahead of New $1 Billion North Carolina Campus

Thursday July 29, 2021 9:14 am PDT by
Back in April, Apple announced a $430 billion investment over the next five years to create more than 20,000 new jobs as the company continues to expand. One significant piece of that plan is a new engineering and research center in North Carolina where Apple will be investing over $1 billion and hiring at least 3,000 employees. Assemblage of seven properties in Research Triangle Park owned by ...
telegram

Bumper Telegram Update Enables Video Calls With Up to 1,000 Viewers

Saturday July 31, 2021 12:13 am PDT by
Telegram Messenger has received a major update to its video capabilities, including support for video calls with up to 1,000 viewers. Group video calls in Telegram allow up to 30 users to stream video from both their camera and their screen, and now a maximum of 1,000 people can tune into the broadcast. Telegram says it intends to continue increasing this limit "until all humans on Earth...
app store blue banner

Elon Musk: Apple's App Store Fees Are a 'De Facto Global Tax on the Internet'

Friday July 30, 2021 10:04 am PDT by
Tesla CEO Elon Musk took to Twitter today to criticize Apple's App Store fees in a tweet that sides with Epic in the ongoing Epic v. Apple dispute. "Epic is right," wrote Musk, before going on to call Apple's App Store fees a "de facto global tax on the Internet." Musk earlier this week made veiled comments about App Store fees, but today's statement is a much more direct criticism....
FaceID iMac REREREREMIX

Top Stories: Face ID on Future Macs, Elon Musk Criticizes Apple, and More

Saturday July 31, 2021 6:00 am PDT by
This week saw an interesting range of Apple news and rumors, including a blockbuster earnings report, rumors about next year's "iPhone 14" and Face ID coming to Macs, and more. Subscribe to the MacRumors YouTube channel for more videos. Other popular topics included Apple's crackdown on leaks, changes in the latest round of betas for iOS 15, iPadOS 15, and macOS Monterey, and several stories...
duracell battery bitter coating

Apple Says Don't Buy AirTag Replacement Batteries With Bitter Coating

Wednesday July 28, 2021 11:08 am PDT by
Since AirTags were just released earlier this year and are expected to have a year-long battery life, it may be some time yet before AirTag users need a replacement battery, but when the time comes for a refresh, Apple is warning customers not to buy batteries with a bitter coating. AirTags use coin-shaped CR2032 batteries, which happen to be a size that's easy to swallow. Some battery...