All three of the iPhones Apple is expected to launch in 2020 will be equipped with a 5G modem, according to a new report from analyst Ming-Chi Kuo.Previously Kuo expected only two models to support 5G; however, he now believes that all three iPhones will get 5G to better compete with lower-cost Android smartphones that support the technology.
We now believe that all three new 2H20 iPhone models will support 5G for the following reasons. (1) Apple has more resource for developing the 5G iPhone after the acquisition of Intel baseband business. (2) We expect that the prices of 5G Android smartphones will decline to $249-349 USD in 2H20. We believe that 5G Android smartphones, which will be sold at $249-349 USD, will only support Sub-6GHz. But the key is that consumers will think that 5G is the necessary function in 2H20. Therefore, iPhone models which will be sold at higher prices have to support 5G for winning more subsidies from mobile operators and consumers' purchase intention. (3) Boosting 5G developments could benefit Apple's AR ecosystem.
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