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.


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

Top Rated Comments

(View all)
Avatar
10 months ago
The iPhone 4 design is still perhaps the best to date. Anyone else agree?
Score: 51 Votes (Like | Disagree)
Avatar
10 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)
Avatar
10 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)
Avatar
10 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)
Avatar
10 months ago
Not major price increase.In Apple logic 100$ at least...
Score: 11 Votes (Like | Disagree)
Avatar
10 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

Here's How You Can Download iOS 14 and iPadOS 14 Around the World [It's Out]

Wednesday September 16, 2020 2:36 am PDT by
Apple's official public release of iOS 14 and iPadOS 14 dropped on Wednesday, September 16, just a day after the company released the Golden Master to third-party developers. Also set to be made available to the general public for the first time are watchOS 7 and tvOS 14. Getting Started With iOS 14 Video Click image to watch iOS 14 Getting Started While that's left a lot of developers...

When Will the iPhone 12 Launch? Here's What We Know

Wednesday September 16, 2020 6:12 am PDT by
Yesterday's "Time Flies" Apple event saw the release of the Apple Watch Series 6, Apple Watch SE, iPad 8, and iPad Air 4, but no new iPhone models. Rumors before the event strongly alleged that it would not see the unveiling of new iPhones, with many reports pointing to an October launch. The lack of new iPhone models yesterday seems to confirm that the iPhone 12 lineup will not appear...

Apple Releases iOS 14 and iPadOS 14 With Home Screen Redesign, App Library, Compact UI, Translate App, Scribble Support, App Clips, and More

Wednesday September 16, 2020 12:48 pm PDT by
Apple has released iOS 14 and iPadOS 14, the newest operating system updates designed for the iPhone and iPad. As with all of Apple's software updates, iOS 14 and iPadOS 14 can be downloaded for free. iOS 14 is available on the iPhone 6s and later, while iPadOS 14 is available on the iPad Air 2 and later. The updates are available on all eligible devices over-the-air in the Settings app. To ...

Apple Releases Safari 14 for Mac Ahead of macOS Big Sur Launch

Wednesday September 16, 2020 1:40 pm PDT by
macOS Big Sur didn't launch alongside iOS 14, iPadOS 14, tvOS 14, and watchOS 7 today, with the update coming later this fall, but Apple did release the Safari 14 update for macOS Catalina and macOS Mojave users. Safari 14 brings improved performance, customizable start pages, a Privacy Report to see which cross-site trackers are being blocked, and a new tab bar design that provides tab...

Apple Updates AirPods 2 and AirPods Pro Firmware to Version 3A283

Monday September 14, 2020 11:24 am PDT by
Apple today released new 3A283 firmware updates for the second-generation AirPods and the AirPods Pro. The second-generation AirPods are being updated from the 2D15 firmware they were previously running, while the AirPods Pros are being updated from the 2D27 firmware they had installed previously. Apple does not provide details on what's included in refreshed firmware so we don't know what's ...

iOS 14 Picture in Picture No Longer Working With YouTube's Mobile Website in Safari [Without Premium]

Friday September 18, 2020 12:21 pm PDT by
Apple in iOS 14 added Picture in Picture to the iPhone, a feature designed to let you watch a video in a small screen on your device while you continue to do other things on the phone. When Picture in Picture was working with YouTube The YouTube app doesn't support Picture in Picture, but up until yesterday there was a functional workaround that allowed videos from YouTube.com to be watched...

Hands-On With the New Apple Watch Series 6 and Apple Watch SE

Friday September 18, 2020 1:19 pm PDT by
Today's the official launch date for the Apple Watch Series 6 and the Apple Watch SE, both of which Apple announced on Tuesday. We picked up a couple of the new models and thought we'd give them a quick look for MacRumors readers thinking of ordering a new watch. Apple Watch Series 6 & Apple Watch SE Hands-On! When it comes to design, both the $399 Series 6 and the $279 SE look just like...

iOS 14.2 Beta Adds New Shazam Music Recognition Feature for Control Center

Thursday September 17, 2020 3:36 pm PDT by
Apple today released the first beta of iOS 14.2 to developers for testing purposes, and the new update introduces a Music Recognition control for the Control Center. The new feature lets you discover music playing around you and it recognizes the music playing with in apps, even when you're wearing AirPods. Songs pop up as notifications, and you can tap to listen in Apple Music....

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

Apple Releases watchOS 7 With New Watch Faces, Family Setup, Sleep Tracking, Handwashing Help and More

Wednesday September 16, 2020 12:47 pm PDT by
Apple today released watchOS 7, the newest version of the watchOS operating system designed to run on modern Apple Watch models. The watchOS 7 update comes after several months of beta testing. ‌watchOS 7‌ can be downloaded for free through the dedicated Apple Watch app on the iPhone by going to General > Software Update. To install the new software, the Apple Watch needs to have at...