We talked previously and in several articles that Apple has Opportunity this year While its competitors increase the prices of their devices, rumors say that Apple will reduce the price of X by $ 100 to start at $ 899 instead of $ 999, but it seems that these dreams will evaporate due to the world's transition to 5G technology, which begins its global spread next year.

Does 5G kill the dream of reducing the price of the iPhone?


How are general technologies developing?

There are technologies that are considered special techniques to be the way Samsung illuminates its OLED screens; This technology is exclusive to Samsung and registered for it, but it is not a general thing, meaning only those who buy a screen from Samsung will benefit from it. But the matter differs, for example, in the phone chip, as all companies use the same chip; The same applies to computers USB and HDMI. Bluetooth and Wi-Fi technology, as well as communication networks. Here all companies around the world use the same command and it cannot be exclusive to one company. It is unreasonable to say HTC has the right to use Bluetooth 6.0, for example (not present, and this is an example). How are these technologies developed?

This is done by alliances between companies, for example, Bluetooth and USB are institutions in which many companies participate and provide research to develop these technologies. In the case of Bluetooth, for example, most companies around the world are involved in developing this technology, but the situation is completely different in communications, let it be the fourth generation LTE or the fifth 5G. Where each company independently or in cooperation with others develops their own technologies because the conflict here is in competition. Every company wants to reach the fastest way to connect to the network, and you remember how mocking Samsung currently is about Apple because the S9 devices are faster to connect to the Internet than the iPhone X.

Now that we know how general technologies are developing, we can answer the question of how this will affect the price of the iPhone?


Apple will pay more

After each company develops its own technologies, it registers its own patents, and no company around the world has the right to use their technologies without prior permission. There are 3 leading companies that are considered to have mainly developed the 5G “not alone, but they are the basis” and these companies are “Nokia, Ericsson and Qualcomm”. Yes, do not be surprised, as Nokia is still a leader in research and development. The death of the phone division does not mean that Nokia is over. The same is true with Ericsson, which disappeared after its separation from Sony and the famous Sony Ericsson phones, but these companies specialized mainly in research and development of technologies. And of course with them, the industry leader in this field, "Qualcomm" archenemy of Apple, which of course will support it in its next processor 855 as it is rumored.

A few days ago, the companies concluded a coordination agreement between them to use their patents, according to which those who wish to use 5G technology will have to pay Nokia 3 euros ($ 3.5), and Ericsson decided to charge $ 2.5-5.0 according to the price of the device. As for Qualcomm, as it is known, it gets a percentage and the company decided that its percentage will be 2.275% of the selling price of the device up to $ 400, and the price increases to become 3.5% in the case of using 5G / 4G / 3G with their own technologies, meaning this may mean a total of $ 21 or more on Apple paid it as a "fee" to support XNUMXG technology.


The effect of fees on the price of the iPhone

Some may see that $ 21 is a very low amount and will not affect Apple and the iPhone, but this is not true, it is known that Apple achieves the highest profit margin from the iPhone, for example, the cost of cutting the iPhone X is more expensive than the cost of the iPhone 8 Plus at $ 82 but Apple has made The price difference is $ 200. This means that an increase in the cost of the fee line by $ 21 means, in Apple accounts, an increase in the sales price of $ 50. This dispels old dreams that Apple will reduce the price of the iPhone X by $ 100 because there are $ 50 increased due to fees and of course there are other increases.


Maybe not the next iPhone

It is known that Apple is a company that takes a long time before adding differential technologies, so many sources said that the iPhone, which will be released after two weeks, will not support 5G, but rather the iPhone next year. But the beginning of 2019 will issue the Samsung S10 and of course it will support 5G, and here it will have a fatal feature which is that those whose area is supported by 5G around the world must acquire Samsung devices or P30 from Huawei or any phone but not the iPhone. Imagine that you will go to the Apple Store and buy the latest phone that does not support the new network. Logically and according to theoretical calculations, Apple will not support 5G this year, but you may want to claim the title of the first flagship phone to support 21G networks. A difficult and financially expensive choice. $ 5 per device means more than $ 999 billion annually that Apple pays Qualcomm, Nokia and Ericsson. The support will be iPhone and iPad as well. And it is unreasonable for Apple to reduce the price of the iPhone and then increase it again next year, so we expect the price to become the same as $ XNUMX for the X

Do you expect Apple to increase the price of the iPhone to support 5G? Will it take place this year? Or did she decide, out of habit, to bear the cost difference?

Sources:

Forbes | VentureBeat | appleinsider

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