Web Desk: Apple’s new iPhone will have significant upgrades and it seems that Apple is all set to higher the price of iPhone, reported Forbes.
Recently, Nokia announced a flat-rate €3 ($3.49) per-device cost for the licence of its 5G patents. Coupled with fellow 5G patent owner’s Ericsson and Qualcomm’s decisions – the former charging up to $5 and the latter 2.275% of a device’s cost (up to a maximum of $400) – this is expected to add approximately $21 to Apple’s costs of making every iPhone.
And iPhone buyers will have to pay a lot more.
Why? Because Apple prides itself on maintaining the largest profit margins in the smartphone market. For example, the biggest factor behind the iPhone X’s $999 price tag was its move to OLED panels ($35) which were $20 more than LCD. Yes, that’s about the same fee as 5G licensing.
The company’s controversial decision to rely solely on historically interior Intel modems in all new iPhones means it is highly unlikely to support 5G. But with Samsung’s Galaxy S10 recently confirmed as being 5G compatible, Apple will have to step up and bite the licensing bullet as soon as next year.
And this could make the iPhone lot more expensive.