Another day, another iPhone 12 rumour. This one doesn’t give us a hard look at the iPhone 12, unfortunately, but it does provide insight into Apple’s production process and how it’s aggressively trying to reduce prices for its components to offset the expensive cost of adding 5G connectivity to the next generation of iPhones. The news comes via a note to investors from the ever-accurate Ming-Chi Kuo, obtained by MacRumours.
The main motivation behind cutting the cost of its components is to avoid raising the price of the (already expensive) iPhone range, and that’s understandable – especially when you consider the iPhone 11 Pro Max starts at £1,149/$1,099. Kuo claims that the inclusion of Sub-6GHz 5G technology will increase the manufacturing cost by between $75 and $85, while the high-end millimeter (MM) wave technology will cost even more at between $125 and $135 per iPhone.
Kuo goes on to explain that Apple has been putting “higher bargaining pressure” on its component suppliers, with a particular focus on trimming the cost wherever possible. To that end, Apple has moved to a simpler, smaller battery board design with fewer labels that’s cheaper to mass-produce, with the iPhone 12 battery board reportedly costing Apple 40-50% less than that of the iPhone 11 range.
Kuo also looks beyond the iPhone 12 range in his latest report, claiming that 2021’s “iPhone 12s” will adopt a purely soft battery board design that’ll further reduce the cost by 30-40% compared to this year’s model.
Apple’s cost-cutting measures aren’t surprising considering the expense of 5G technology but it’s something that has to be done at this point, especially when you consider there are cheap Androids that now provide 5G connectivity. And, let’s be honest, Apple would struggle to justify a price hike on the already premium iPhone range – especially in a worldwide recession.
Apple’s iPhone 12 range is expected to be released in mid-October, following delays in production. To find out more about the upcoming smartphone range, check out the latest iPhone 12 news.