The cost of the iPhone 12 is increasing due to the 5G hardware.
Apple is looking to offset this cost by reducing the cost of other components.
Apple is looking to adopt a simpler and smaller battery design with fewer layers to offset the rising cost of the iPhone 12.
It looks like Apple is facing high production costs on the iPhone 12 due to the 5G hardware that the phone will support. It looks like Apple is looking to offset this cost by reducing the cost involved in other components. According to analyst Ming-Chi Kuo, as reported by MacRumors, “adoption of Sub-6GHz 5G technology will increase Apple's costs by $75–$85, while millimetre wave technology will incur a $125–$135 cost for Apple, so the company is cutting costs on other components wherever it can”.
According to Kuo, the battery board is one place where apple will cut costs on the iPhone 12. Apple is expected to move to a simpler and smaller design with fewer layers for the battery of the upcoming smartphone. According to MacRumors, “The hybrid hard and soft battery board for the iPhone 12 will reportedly be 40–50% cheaper than the equivalent part in the iPhone 11 series, although this component is likely a small contributor to Apple's overall costs.”
The report goes on to say that the 2021 iPhones will have a purely soft board design which will reduce the cost by an additional 30-40% when compared to the iPhone 12.
Information circulating the internet also suggests that Apple could exclude the charger and the earphones from the box of the iPhone 12, reducing the cost of the device further.
Apple isn’t the only company facing rising production costs due to 5G hardware. All smartphone makers manufacturing 5G devices have seen an increase in the cost of production. Apple is also looking to launch a 4G only iPhone 12 in 2021 and it is possible that this phone will be targeted at those markets where 5G hardware isn’t ready. It looks like India could be one of those markets as Apple is already looking to produce the iPhone 12 in India. You can read more about that here. You can also check out everything we know about the iPhone 12 here.
If you are an iPhone user and want to install iOS 14 public beta, you can follow the steps here.
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Sameer Mitha
Sameer Mitha lives for gaming and technology is his muse. When he isn’t busy playing with gadgets or video games he delves into the world of fantasy novels. View Full Profile
