Apple will use cheaper and less complex components for its upcoming iPhone 12 series, to help offset the cost due to the usage of 5G hardware, according to Apple analyst Ming-Chi Kuo via MacRumors and AppleInsider. In the report, Kuo stated that Apple is putting “higher bargaining pressure” suppliers for cheaper parts.
He said that the better board is an area that will see the biggest cost trimming due to the pressure. The iPhone 12 battery board will cost 40-50 per cent cheaper when compared to its equivalent inside of the iPhone 11 series.
This cost trimming is required due to the use of the sub-6GHz 5G technology, which is set to increase the cost of manufacturing by around $75 to $85 (approximately Rs 5,600 to Rs 6,300). Apart from this, the millimetre wave chips would cost the company another $125-$135 (approximately Rs 9,300 to Rs 10,100).
Kuo also said that the next year’s iPhone lineup will opt for a purely soft board design that will help Apple save another 30 to 40 per cent over the board used inside of the upcoming iPhone 12 series.
Apple is also said to make a similar move with its third-generation AirPods, abandoning the second-generation AirPods battery PCB for a system-in-package design. This will help the company reduce the cost of its truly wireless earphones. The company is expected to launch its third-generation AirPods in the first half of 2021.
In related news, Apple recently announced that a delay in the launch of its upcoming iPhones. Apple’s Chief Financial Officer Luca Maestri in an earning call said, “As you know, last year we started selling iPhones in late September. This year, we expect supply to be available a few weeks later.” The company did not provide a reason behind the delay, however, various reports suggest that the delay has taken place due to the current COVID-19 pandemic, because of which Apple engineers were unable to visit China to approve the designs and the products.
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