Apple is reportedly using a simpler battery board among other measures to help offset 5G component costs in its next generation iPhones.
According to analyst Ming-Chi Kuo via MacRumors, adopting sub-GHz 5G technology will increase Apple's costs by $75-$85, while millimeter wave technology will increase costs by $125-$135.
While Apple has broadly been putting "higher bargaining pressure" on its suppliers, the battery board is one area where Kuo believes suppliers will see the biggest cost trimming with Apple reportedly moving to a simpler and smaller design with fewer layers. 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.
In 2021, Apple could move to a purely soft board design that would reduce costs 30-40% compared to the iPhone 12 board.
Notably, it's been widely rumored that Apple will not include a charger or EarPods in the box with its new iPhones. If true, this would also help the company cut costs.
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According to analyst Ming-Chi Kuo via MacRumors, adopting sub-GHz 5G technology will increase Apple's costs by $75-$85, while millimeter wave technology will increase costs by $125-$135.
While Apple has broadly been putting "higher bargaining pressure" on its suppliers, the battery board is one area where Kuo believes suppliers will see the biggest cost trimming with Apple reportedly moving to a simpler and smaller design with fewer layers. 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.
In 2021, Apple could move to a purely soft board design that would reduce costs 30-40% compared to the iPhone 12 board.
Notably, it's been widely rumored that Apple will not include a charger or EarPods in the box with its new iPhones. If true, this would also help the company cut costs.
Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates.