Apple Expected to Produce Three 5-G Supported iPhone Models in 2020 - Report

The move is designed to help the iPhone maker compete with 5G Android devices.
By Tony Owusu ,

Apple (AAPL) - Get Report shares got a slight boost Monday after TF Securities analyst Ming-Chi Kuo published a note saying he expects all three models of Apple's 2020 iPhones with be 5G compatible as the tech giant looks to compete with Android devices. 

Kuo's new estimate is up from the two 5G iPhone models the analyst previously estimated Apple would produce. Apple, however, will need to compete with low-cost 5G options. Its 2019 iPhones that will likely be announced in September are still not expected to support 5G.

"Apple has more resources for developing the 5G iPhone after the acquisition of Intel baseband business, " Kuo said in his note. "We expect that the prices of 5G Android smartphones will decline to $249-349 USD in 2H20," he added, noting that "consumers will think that 5G is the necessary function" by the time they're launched.

5G is a wireless network that operates faster than the current 4G LTE standard. Only a few current Android models have 5G connectivity, but 5G coverage is so limited at this point that it doesn't offer much benefit to most people. 

Apple shares were rising 0.22% in premarket trading to $208.20. 

Apple is a holding in Jim Cramer's Action Alerts PLUS charitable trust

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