The phone will be Apple's first with 5G capabilities and should spark a multi-year opportunity, Ives said. Apple's faster-than-expected supply chain restoration allows the company to move forward with what will likely be a four-phone lineup spanning 4G and 5G handsets. Ives expects some 5G versions to come in under $1,000 each, with some cost savings coming from the absence of earbuds or a charger in the phone's box.
Launching the iPhone 12 with such packaging is a win-win, the analyst said. Leaving earbuds out creates "more cross-sell opportunities for AirPods" and allows the company to keep phone prices stable in the still-expensive 5G market. Roughly 350 million of Apple's 950 million iPhones worldwide are set for an upgrade in the fall. With a new range of phones spanning price points and 5G capability, the company is positioned for demand to spike over the next 12 to 18 months, Ives said.
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Not paying more than $1000 for a smartphone. That is laptop prices.
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