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    iPhone 12 price may go up due to 5G; Apple's move of removing charger from box aimed at cutting cost

    Synopsis

    The only thing Apple will include for free with the iPhone 12 will be a USB-C lightning cable.

    Untitled-5Agencies
    With the coronavirus pandemic upsetting its supply chain, there are doubts on whether Apple will go ahead and release the latest iteration of the iPhone in September, as it has done in previous years.
    The world might be in the middle of a recession, and if you are an Apple fan, now might be a good time to get conditioned to paying more for future iPhones. According to a research note by long-time Apple analyst Ming-Chi Kuo, the company will not include a charger with the iPhone 12, and will instead retail it separately as an accessory. Well, a phone without a charger is no good. Those eyeing the latest iPhone can afford to cough up a few dollars more for a charger. Or so thinks Apple, Kuo reckons.

    He added that Apple will release a new 20W adapter as an accessory and end production of its existing line of 5W and 18W power adapters in 2020. A leaked photo that did the rounds on the internet this week revealed that the 20W charger will be akin to the outgoing 18W version and will be USB-C compatible, and capable of fast charging. Fast-charging adapters are shipped along with iPhone 11 Pro devices.

    Chargers will not be the only hardware that prospective iPhone 12 owners will find missing while unboxing their new phones. A separate report on MacRumors says that Apple will also not include wired earbuds, which the company calls EarPods, along with the iPhone 12. Kuo said in a research note to investors last month that he expected Apple to discontinue giving EarPods for free in a bid to drive demand for its wireless earphones: AirPods. These are sold separately for Rs. 14,900, while the Pro version costs Rs. 24,900.

    Kuo reckons that the charger and earbuds will be done away with an eye on keeping the overall cost of the device from increasing. Products costs are expected to go up for the iPhone 12 on account of its support of 5G networks. He believes that Apple will sell the upcoming iPhone at a price similar to the incumbent iPhone 11, and taking out the charger and the earbuds will help it achieve that target.

    Even then, the sleight of hand on pricing might backfire. A phone without a charger is like a car without fuel. Those upgrading from older iPhones might be able to forego the additional expense if they have spare chargers or earbuds lying around. Apple’s lightning chargers won’t suffice as they don’t come with USB-C support. Those without earbuds will have to buy new ones from Apple or other manufacturers. Price conscious buyers might baulk at the cost of Air Pods, and opt for cheaper alternatives. Apple, however, is betting on loyalists paying a premium for the AirPods. Apple presently sells its 18W adapter and earbuds for $29 each.

    Analysts at Barclays are of the opinion that Apple will sell chargers and earbuds as accessories in the future, and that the only thing the company will include for free with the iPhone 12 will be a USB-C to lightning cable. However, with the coronavirus pandemic upsetting its supply chain, there are doubts on whether Apple will go ahead and release the latest iteration of the iPhone in September, as it has done in previous years.

    The researchers at Barclays opined that production of the iPhone 12 is behind schedule by up to six weeks, upending the timeline that the company has adhered to for the past few years. Despite the disruption, analysts believe that Apple will go ahead and announce the new line of iPhones in September, and will commercially release the devices on a rolling basis.



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