Well-known Apple analyst said that although 5G components will increase the cost of the 5G iPhone by $ 30 to $ 100, it is estimated that Apple will not significantly increase the price of the 5G iPhone and expects its price to be similar to the current iPhone 11 Pro series.
Cancel one-time engineering costs
Kuo pointed out that Apple intends to shift costs by reducing supply chain expenses, such as some one-off engineering costs, such as research and development, design, development, and testing costs. Since the case will be one of the most significant increases in the cost of the iPhone 5G version, in order to reduce the development cost of the case, Apple may cancel one-time engineering costs.
Keep prices competitive
He believes that Apple's cancellation of engineering costs will be replaced with more internal design, which will help improve its own design and development capabilities and will reduce dependence on suppliers. Analyst also believes that in order to increase revenue from value-added services, it is equally important to maintain a competitive selling price, and reducing development costs is a necessary method to maintain competitiveness.
iPhone SE 2 replaces compensation
Apple originally issued a one-time engineering fee to the supply chain to compensate manufacturers for the off-season losses. Now it intends to launch iPhone SE 2 (or iPhone 9) in the first quarter of 2020, which will help increase the use of manufacturers' production lines, so it can be cancelled One-time engineering costs.