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Even though the iPhone 12 might not arrive until jack-o-lanterns start appearing on people’s doorsteps, we already know an awful lot about Apple’s plans. Most notably, there will reportedly be four iPhone models for the first time, with a new 5.4-inch model option to slide into the low-end slot and the flagship model expected to grow to 6.7 inches.
However, even with bigger screens and a switch away from LCD on all models, Jon Prosser reported late last month that prices aren’t going to change all that much:
Those prices mean you’re going to be getting more screen for the same amount of money with the Pro models, a better display for just $50 more than the iPhone 11, and a new lower starting price for budget-conscious buyers. On its own, that would be impressive, but the new iPhones are also all rumored to come equipped with 5G modems that will presumably support both T-Mobile’s sub-6GHz and Verizon’s mmWave networks.
Apple would be well within its rights to charge more for a 5G iPhone. Just this year, the Galaxy S20 and OnePlus 8 Pro jumped by hundreds of dollars compared to their prior LTE equivalents, with the S20 climbing to a whopping $1,600 for the highest configuration. Assuming the iPhone capacity pricing stays the same, that’s $150 more than an iPhone 11 Pro Max with the same 512GB of storage. And the 8 Pro was the first OnePlus phone to cross the thousand-dollar barrier.
So why isn’t Apple increasing its prices like its Android peers? We all know that Apple loves its 38 percent profit margins, so it’s not about to take a hit on its biggest-selling device just to be nice. Rather, a combination of timing, smarts, and Apple’s longterm strategy is about to pay off in a big way.
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