Apple (AAPL) – Get report It will try to offset the higher manufacturing costs for this year’s iPhones by shipping them without a pair of accessories that come with current models, according to analyst Ming-Chi Kuo’s latest report.
Kuo, who has a good (albeit not perfect) track record when it comes to breaking news about future Apple products, says Apple’s 2020 iPhones won’t ship with wired headphones (EarPods) or a power adapter. It doesn’t say if Apple will still include a Lightning cable.
The report comes a few days after one from research firm Barclays which (citing conversations with Apple vendors) also predicts that this year’s iPhones will not ship with EarPods, adding that maybe not send with a power adapter.
Kuo attributes Apple’s decision to a desire to offset the cost of including 5G radios, which increase Apple’s modem costs and front RF components, within all of its newer iPhone models. Furthermore, reducing the size and weight of iPhone cases could allow Apple to save on shipping costs, and the company could argue that its actions serve to reduce waste of electronic products.
Currently, the iPhone 11 Pro and Pro Max are delivered with an 18-watt power adapter that is based on the relatively new USB-C interface. All other iPhones dating back to iPhone 5, including the regular iPhone 11, ship with a 5-watt adapter that is based on the standard USB interface. Kuo believes Apple plans to discontinue both adapters in favor of separately selling a new 20-watt adapter.
Apple currently sells its 18W USB-C adapter for $ 29 independently, while Amazon.com (AMZN) – Get report sells it for $ 20. A host of iPhone-compatible power adapters, including some that come with a USB-C to Lightning cable and / or multiple charging ports, are also available from third parties; They are generally priced at $ 10 to $ 25 on Amazon.
With the bulk of new iPhone sales coming from consumers updating an existing model, Apple could bet that most buyers of its 2020 iPhones will already have a power adapter into which they can plug in their new iPhone. You might also take Apple’s decision-making into account – a part of your iPhone dock prefers to use more than just its wired chargers to power your iPhones, like a wireless charging pad or a multi-port third-party charger.
It’s not too difficult to figure out why Apple might choose to stop shipping EarPods with new iPhones: Wireless headphone sales in general, and AirPods sales in particular, have taken off. A week ago, Kuo forecast that AirPods shipments would increase 65% in 2020 to 93.8 million.
Also, since EarPods (like USB chargers) have been shipped with iPhones for a long time, most iPhone buyers who are already updating will already have at least a pair.
Apple’s iPhone 2020 lineup is expected to feature iconic 6.1- and 6.7-inch models that would succeed the iPhone 11 Pro and Pro Max, along with cheaper 5.4 and 6.1-inch models that would succeed the iPhone 11. All four models are expected to They have OLED displays, and flagship models may also feature (like Apple’s latest iPad Pros) a LIDAR scanner that works with their rear cameras to enable new augmented reality features and improved depth-of-field effects.
Due to disruptions caused by the COVID-19 pandemic, Apple’s 2020 iPhones may be arriving a bit late. In early June, chip provider Broadcom (AVGO) – Get report He indicated that this year’s iPhone production ramp will start later than usual. Barclays, meanwhile, estimates that mass production of new iPhones will begin four to six weeks later than is usually the case this year.
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