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Analyst spills the beans on iPhone 12 price hike

(Image credit: Ben Geskin/Smazizg)

Surprise! (but not surprised?) It seems that the iPhone 12 will have a higher price tag than its predecessor. 

The new iPhone 12 line will allegedly cost from $30 to $100 more due to its new all-metal flat frame retro design reminiscent of the classic iPhone 4 plus its 5G connectivity. This will reportedly raise prices — just not by that much.

Apple is not about to sacrifice its insane iPhone profit margin. Instead, the Cupertino company is planning to compensate this production price by cutting down supply chain costs and non-recurring engineering expenses like research, development and testing of the new parts needed for the new design. 

And of course charging a little bit to its users because, why not. However, it’s clear that Apple couldn’t possibly pass all that extra overhead to its users. It’s too much. According to a new report, only 10% of Americans buy $1,000 phones. I’d bet that percentage is lower all over the world.

(Image credit: Ben Geskin/Smazizg)

This information comes from reliable Apple analyst Ming-Chi Kuo’s new client report, obtained by MacRumors. According to the blog, Kuo “Apple will not significantly increase the price of 5G iPhones compared to this year's lineup.” The current lineup starts at $700 and goes all the way to $1,100 for the iPhone 11 Pro Max.

He doesn’t say how much is “not significant”, but I want to imagine this is less than $50.

Also according to the same note, Kuo firmly believes that Apple is planning to release iPhones twice a year, launching the “low end” line in the spring and the “high end” over the fall, the traditional launch window for these devices. It’s unknown if the low end is the SE2 or if that will also include the iPhone 12 or the iPhone 12 lite or whatever it’s called, because right now the rumor is that there are six iPhones coming in 2020

So much for simplifying the Apple product line.

In addition to 5G and a new look, the iPhone 12 will reportedly add a time of flight sensor for improved augmented reality performance. Catch up on all the latest news and rumors on our iPhone 12 hub page.