iPhone 12 is going to be cheaper than what we think

With the delay in the launch of the iPhone 12 due to pandemic, the company is expected to unveil the phone in the second week of October. However, with the current market scenario and problem in the availability of parts and components, we might see a cheaper iPhone 12 than what was expected. As per Apple analyst Ming-Chi Kuo, the company is looking to use less complex and cheaper components for the iPhone 12 series which will remarkably reduce the cost of the phone. 

The overall cost of the phone was very high due to the integration of 5G hardware. Due to this Apple is putting “higher bargaining pressure” on suppliers for cheaper parts. As per the company, the most expensive part of the iPhone, where the cost-cutting could be done is the battery board. Therefore, the new battery board is expected to be 40-50% cheaper when compared to the one used in the iPhone 11. The cost-cutting was necessary because of sub-6GHz 5G technology, which increased manufacturing cost by almost $80. Another expensive cost to iPhone 12 is the millimeter wave chips, adding another $135 to the manufacturing cost. 

As per the details, Apple will be using soft board design to reduce the cost of the component which will allow us to compensate for the cost. In a similar move, the company might also redesign the battery PCB for AirPods, which will make the product even cheaper than last generation. The changes will be visible in the battery PCB with a system-in-package design, further reducing its cost.

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