iPhone 12: A Look at the Smartphone Industry in 2020

The mobile phone market was already undergoing significant changes before the emergence of COVID-19. Over thirteen years following the debut of the first iPhone, these devices have evolved from being considered luxuries to commonplace goods, resulting in a decrease in their appeal. Recent years have demonstrated extended periods between consumer upgrades, as individuals have become less willing to spend $1,000 or more on the latest models.

Although the iPhone 12’s development began prior to the current global health crisis, the pandemic-related shutdowns have intensified pre-existing challenges for smartphone manufacturers. Apple’s response to these conditions is clearly visible in the extensive range of iPhones unveiled at the recent “Hi Speed” event. The era of relying on just one or two primary models is now over.

The event featured a total of four new iPhone models, with prices varying from $699 to $1,099: the 12, 12 mini, 12 Pro, and 12 Pro Max. Similar to the Apple Watch strategy, the company is continuing to offer last year’s iPhone 11 at a reduced price of $599. This positions the older model within the upper-mid-range category for Android devices, and provides a more affordable entry point for consumers interested in Apple products.

The company – traditionally recognized for its higher price points – has become increasingly competitive with its pricing as the market has shifted; the current product line now presents a $500 difference between the lowest and highest starting prices for iPhones. Recent data from Canalys highlights the widening gap in 2020, with COVID-19 further contributing to consumer reluctance to make substantial purchases on smartphones.

According to the firm’s findings, smartphones costing over $800 experienced a 23% decrease in global shipments during the first half of the year. Conversely, devices priced between $600 and $799 saw a 10% increase. While this increase isn’t substantial, it’s a positive development considering the overall decline in sales figures.

Another noteworthy statistic from Canalys is that only 13% of smartphone shipments were 5G-enabled during the same period. It’s important to remember that new device designs and 5G technology were anticipated to revitalize the industry. The former, largely referring to foldable phones, has not yet achieved widespread success. 5G has had some impact – notably in China, which currently accounts for 78% of all 5G shipments. However, overall progress appears to be slower than manufacturers initially projected.

The expansion of 5G networks has been gradual in many regions, although the United States is beginning to see increased coverage. Numerous manufacturers have also been proactive in incorporating the technology across their product lines. Samsung serves as an example of a company that was both an early adopter of 5G and quickly integrated it into all of its flagship devices. Companies are clearly focused on accelerating the rollout of 5G, often bypassing the typical practice of initially offering it only on premium models.

Qualcomm has played a role in this process for Android devices, introducing the 5G-capable 765 series for mid-range products. Apple has also followed this approach. The company is approximately a year behind some competitors in terms of 5G adoption, but when it did implement the technology, it did so across the entire iPhone 12 lineup. While there are various ways the different models are distinguished, 5G connectivity is not one of them.

Apple’s comprehensive adoption of 5G is expected to significantly influence shipment numbers in the second half of the year. Analysts have long anticipated the arrival of the iPhone to boost these figures. However, it seems probable that the final numbers will still fall short of initial projections due to the ongoing pandemic and the uncertain economic circumstances faced by many consumers.

Although the average cost of 5G-enabled phones has decreased rapidly, many consumers find their current devices adequate, and in times of economic instability, extending their use for an additional year or two is a sensible choice.