The price of iPhone 11s/12 will not rise significantly, and Apple will cut supply chain expenses
The price of iPhone 11s/12 will not rise significantly, and Apple will cut supply chain expenses

On December 12, it was reported that the price of iPhones is already quite expensive. According to phone Arena, some people predicted that the price of new iPhones would rise significantly next year due to the support of 5G networks and more expensive designs. However, analyst Guo Mingxuan had different opinions. He believed that although the cost of parts had risen, when the iPhone 11s/12 was launched next year, "Apple would not raise the price significantly"The price of the new iPhone will not rise more than 50 dollars (about 350 yuan).

It is reported that the increased cost of using 5G related parts will increase the production cost of each mobile phone by $30 to $100, depending on the model, but Guo Mingxuan said that Apple plans to offset most of the costs by cutting supply chain expenses, rather than letting consumers bear them.

There are several ways to cut costs. The biggest change is to stop paying non recurring engineering fees to metal frame/case manufacturers, because the metal frame/case costs of the new iPhone should increase significantly. Guo Mingxuan said that Apple will transfer more research and development work to the company.

In the spring and summer when iPhone sales declined, Apple's one-time engineering costs often helped to establish a partnership with suppliers. However, Apple plans to launch new products twice a year from 2021, like most of its friends, so this money will not be so important in the future.


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