According to analysts, Apple will not be significantly raising the price for its 2020 iPhones. Each new entry in the Cupertino-based company’s smartphone yearly lineup has been more expensive than the last. But the new report claims that it would not be the case for the upcoming 5G iPhones.

Generally speaking, smartphones that are equipped with 5G modems are more expensive than mainstream 4G variants. The best example of this being Redmi K30 that arrives in a 5G and, a more affordable, 4G variant. However, according to an analyst from TF International Securities, the cost of new iPhones will rise by just 30 to 100 US Dollars (roughly 211 to 703 CNY).

The reason for this is that the iPhone released in spring will share the cost of Apple’s September 2020 launch. The American tech giant is expected to release 5 smartphones in 2020, one of which will be released in spring before its four main lineups. Notably, support for 5G is one of the key upgrades of the new iPhones for the second half of the year.

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Regardless of the more expensive 5G components being offered, Apple will not be increasing pricing significantly. The company aims to achieve this by not paying NRE (non-recurring engineering) for one-time metal frame/ case manufacturers in 2020 which saves development costs for the company. In simpler terms, it can help the company manage revenue and expenditure during off-seasons and peak seasons.

Previously, Apple had to compensate its suppliers for their losses suffered due to differences between off-season and peak season shipments. Now, by launching another device in the spring it can balance the revenue between both seasons and not have to pay the fees that it provided its suppliers such as Foxconn. This will allow Apple to not significantly hike the prices of 2020 iPhones with 5G connectivity.

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In the past few days, there were a lot of rumors about Huawei talking to Apple for supplying 5G chips. To fuel this rumor, Huawei executive went on to say that it was open to selling chips to the Cupertino giant. However, the company has finally taken an official stand. Earlier today, at Huawei’s Analyst Summit 2019, the company dismissed this rumor.

During a Q&A session at the event, Huawei was asked whether there was any credibility to the rumor about Huawei supplying 5G chips for next-gen iPhone. And this was Huawei’s official reply.

“We have no change in our chipset strategy, and no communication with Apple on 5G modems.”

So now we know for sure that Huawei hasn’t been in talks with the iPhone maker.

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Well, it did make sense why some people would think Huawei was the ideal company to supply Apple with 5G chips. The Cupertino giant and Qualcomm haven’t been in the best of terms recently. In fact, their latest lawsuit kicked off earlier this week. Intel would have been the next logical supplier, but the company seems to be a bit behind in schedule in its 5G chip. That leaves Samsung and Huawei. We are not quite sure how well Samsung can handle its 5G chip mass production. So, Huawei was the next logical option.

But with Huawei out of the picture, Intel or Samsung could come to Apple’s rescue. Unfortunately, Apple is yet to comment on this matter.

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It’s been a year since companies have started marketing their efforts and approach for 5G technology. Every major manufacturer and service provider is advertising their works and trials for 5G network compatibility. Still, there’s a lot more gap between these products and the actual 5G network standards. It might take another one year to bridge this gap. As in the US, major carriers have started investing heavily in the new technology, and Apple has also started thinking about it.

So, in order to get the most out of 5G network in the US, the Cupertino giant is partnering with different companies. As per the new report by Fast Company, it is believed that Apple will introduce 5G compatible iPhone in 2020 and will use the Intel’s 10-nanometer 8161 modem. It is coming from a source who has proper knowledge of Apple’s plans.

Well, this means Apple will cut ties with Qualcomm? As from past couple of years, Apple is utilizing the modems from both Qualcomm and Intel but, from next year it might cut ties with the Qualcomm.

Additionally, Intel is testing 5G support with its current 8060 modem chip, but results are not satisfactory, it is getting overheated. In order to make it compatible with the millimeter wave, an electromagnetic radiation spectrum for 5G between 30 -300 GHz, Intel needs to invent something else.

Although, Intel is confident to solve the issue and will cater a new 5G modem with advanced capabilities to support 5G. On the hand, Qualcomm is already in works with the X50 5G modem which will take place on various Android devices like Samsung, Xiaomi and Huawei.

Many Android Manufacturers might come with 5G support in 2019, but Apple’s decision to postpone it to 2020 is not good news for some. Even, Xiaomi has launched Xiaomi Mi Mix 3 with 5G support, but we are unable to utilize it as the network carriers do not offer support for it.

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Overall, all the things should work parallelly, the 5G network should be available first from the carriers, as then only a user can test it. Even, the services and other products should be mature enough to bring the 5G services to users.

We suggest taking this information as a pinch of salt in the ocean as nothing is confirmed. Even, we can’t compare whether it is a good or a bad decision from Apple. We have to wait and watch for at least the next year before we start guessing anything.

(Source| Via)

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