Apple offsetting 5G component costs with cheaper battery technology for iPhone 12, claims report
Renowned industry analyst Ming-Chi Kuo claims Apple is putting pressure on suppliers to reduce component prices for this year’s new iPhone 12 lineup in an effort to offset the cost of 5G components, with Apple supposedly opting for a simpler and smaller battery design for the new 2020 models to bring costs down by 40–50% compared to the price of batteries on the current-generation iPhone 11 range.
In a new research note obtained by MacRumors, Kuo says adoption of Sub-6GHz 5G technology will increase Apple’s costs by $75–$85, while millimeter wave technology will incur a $125–$135 cost for Apple.
Starting with the iPhone 12, the Cupertino tech giant is rumored to have its eyes set on cheaper soft battery boards for future products including the next-generation AirPods and 2021’s “iPhone 12s” which Kuo believes will offer a further 30–40% saving compared to the iPhone 12’s battery cost.
It has previously been rumored that Apple may not include EarPods or a charger in the box of the iPhone 12, instead only bundling a charging cable to further help save costs and avoid a price hike for consumers, although one analyst believes the iPhone 12 may be priced $50 higher than the current models.
This year’s new iPhone lineup is expected to prompt a “supercycle” of upgrades. To recap, Apple is expected to release four new iPhone models this fall: a 5.4-inch and 6.1-inch iPhone 12 to replace the current iPhone 11, and a 6.1-inch and 6.7-inch iPhone 12 Pro/Pro Max.