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.
Not paying more than $1000 for a smartphone. That is laptop prices.
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