Apple is offsetting the extra 5G costs with cheaper battery design in the iPhone 12 Series lineup

iPhone 11 pro -

According to the latest report from prominent Chinese analyst Ming-Chi Kuo, it appears that Apple has been looking for ways to cut iPhone 12 Series manufacturing costs to offset the additional 5G cost. Given the information coming from suppliers, the cost of adding support for 5G Sub-6GHz technology to iPhone is $ 85, while adding mmWave technology could reach $ 135.

Apple is putting pressure on its suppliers to try to lower the cost of components and will use simpler battery designs in the iPhone 12 Series to offset some of this additional cost.

The iPhone 12 battery is said to have fewer layers and smaller spaces, which will reduce costs by about 40 to 50 percent compared to the iPhone 12. Reportedly, Apple will completely abandon the design of hard batteries and move towards soft batteries in the iPhone series. Next 12s Series in 2021, which reduces manufacturing costs. It is said that this will not affect the user experience.

Despite the high cost of adding 5G technology to the iPhone 12 Series lineup in 2020, Apple wants to keep the price close to the iPhone 11 Series price as possible, in order to maintain sales momentum in the wake of the pandemic.

Also according to Ming-Chi Kuo's report, Apple has put pressure on electronic board suppliers for AirPods 2, and this component has become about 25 to 35 percent cheaper since the first half of 2020, which has led to lower manufacturing costs. Just like with AirPods Pro, AirPods 3 will switch to System In Package instead of the Surface Mount technology used in AirPods 2.

Source.

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