Analyst Ming-Chi Kuo is known for accurate analysis and insight into Apple products. According to the latest report by Kuo, Apple is looking for ways to reduce production costs of the iPhone 12. The basis of this need of the company is that 5G support will be offered on the new iPhones.
According to supplier data, the extra cost for iPhone manufacturing to support sub-6GHz 5G goes up to $ 85. In millimeter-wave technology, this cost can go up to $ 135.
Apple is said to be putting pressure on suppliers to reduce their part costs. Kuo claims that the company can use a cheaper battery design in the iPhone 12 to cover some of the extra cost.
It is stated that the battery circuit of the iPhone 12 will have fewer layers and will take up a smaller area. It is stated that this will provide a cost savings of 40 to 50 percent compared to the iPhone 11. It is also claimed that Apple will abandon the hard battery circuit design and switch to the soft circuit in 2021 in order to reduce costs completely. It is stated that this will not affect the end user experience.
Apple wants to keep the prices of the iPhone 12 series as close to the iPhone 11 series as possible, despite the increased costs with 5G. In this way, the company aims to achieve a strong sales momentum despite the effects of the global coronavirus epidemic.