Of all Apple’s new iPhone models, it is the midrange iPhone 12 which is expected to be (by far) the biggest seller. But Apple just confirmed large, stealthy price hikes which may change that.
Apple's iPhone 12 costs a lot more than you think
Spotted by The Verge, Apple has quietly updated its official Repair Page to reveal the iPhone 12 will cost up to 40% more to repair than the iPhone 11. This means it will now cost as much as the iPhone 12 Pro for some repairs, despite using inferior parts.
Let’s put some numbers on this. The headline change is for screen repairs out of warranty. The charge for an iPhone 11 was $199, but the cost for an iPhone 12 has skyrocketed to $279. This is the same as the iPhone 12 Pro (and iPhone 11 Pro before it), despite the fact the iPhone 12 uses a cheaper OLED panel with lower brightness (800 vs 625 nits).
It is a similar story if you navigate to Apple’s Other Damage repair page. Here Apple has increased iPhone 12 repair costs for anything it classes as ‘other damage’ (liquid ingress, cracked back, etc) to $449. This is a $50 increase over the iPhone 11. The iPhone 12 Pro costs even more at $549, but this remains the same price as the iPhone 11 Pro.
The cost between an iPhone 12 Pro and iPhone 12 is smaller than you imagine
All of which (somewhat conveniently) makes Apple’s AppleCarePlus insurance policy borderline essential. For the iPhone 12 this costs $7.99 per month ($149 upfront) or $11.49 per month ($219 upfront) with added Theft and Loss for two years of cover. You still have to pay an excess on top of these plans as well: screen damage $29, accidental damage $99 and (if you have the plan) theft or loss $149.
And there are further stealth costs to iPhone 12 ownership. If you plan to buy sim-free, the phone will cost $30 more at each price point than Apple advertises, because the $799, $849 and $949 price points are tied to carriers. You will also need to pay an extra $40 if you want a wall charger ($20) and EarPods ($20) as they are no longer included in the box this year.
The end result is, compared to a 64GB iPhone 11 launch price ($699), you’ll need to spend $870 on a 64GB iPhone 12 with the same accessories, while the 40% increase in screen repair charges means taking out an AppleCarePlus plan on top is virtually essential. This brings your total spend for a 64GB iPhone 12 to over $1,000.
Whether this is cynical exploitation or ingenious business acumen, is likely to divide opinion. But all those iPhone 13 leaked upgrades are suddenly looking better and better.
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