New iPhone 12 Could Be Cheaper Compared To Its Rivals

When Apple's iPhone 12 launches later this year, buyers may not have to spend upwards of US$ 1,000 to buy a model that's works on 5G networks, according to Wedbush Securities analyst Daniel Ives.

If his predictions turn out to be accurate, the iPhone 12 launch could mark a critical turning point in the industry, potentially ending the trend of tech companies charging a premium on smartphones equipped to handle next-generation wireless networks.

"We believe there are 4 models being launched for iPhone 12 with a mix of 4G/5G with price points that potentially could be lower than US$ 1,000 on some versions despite the additional 5G component," Ives wrote in a recent research note.

His latest analysis echoes previous rumors and predictions suggesting that Apple plans to continue the approach it took in 2019 by offering its new iPhone in less expensive configurations. YouTuber Jon Prosser, for example, previously reported that the next-generation iPhone will come in two variants that cost less than US$ 1,000: a 5.4-inch version priced at US$ 650 and a 6.1-inch model that costs US$ 750.

It's unclear, however, whether all new iPhones will support 5G. Some reports, such as those from reliable analyst Ming-Chi Kuo of TF International Securities and Prosser, have suggested that all of Apple's new iPhones will support 5G. However, Ives said in his report that there will be a "mix of 4G/5G."

The addition of 5G at an affordable price could also provide a much-needed boost to Apple's iPhone business, which has been faltering in recent years as people have been upgrading their phones less frequently. More important for consumers, it could lead to widespread adoption of 5G phones, potentially giving carriers more incentive to further build out their networks across the United States.