iPhone 12: Apple using cheaper battery to offset 5G costs
In October, Apple's CEO Tim Cook will take the stage to unveil the flagship iPhone 12 series. The devices are expected to bring some important updates over their predecessors, including support for 5G networks. But, if a new report is anything to go by, this shift to 5G could also see the Cupertino giant opt for cheaper battery technology. Here's more about it.
A few hours ago, prominent analyst Ming-Chi Kuo published a research report that suggests Apple's decision to include 5G on the new iPhones would increase the cost of production of the devices. He said the sub-6GHz 5G technology would add about $75 to $85 to the cost of the new Phone 12 unit, while millimeter wave technology would add another $125 to $135.
To offset the increased costs, Apple is looking to save on components by using less expensive ones, MacRumors reported. As part of this, Kuo mentioned, the company is using a simpler battery board design with fewer layers and active cell components squeezed into a smaller area. He believed that this one area would see the biggest cost-cutting from Apple.
As per Kuo's estimates, the newer battery board will be 40-50% cheaper than the one used in the iPhone 11. On top of that, he thinks, Apple will build on this design and introduce another board next year, which will reduce the cost of the component further by 30-40%. To note, Apple has not officially confirmed any of these changes.
While the battery will help Apple offset 5G costs, it will not be enough alone. To cut down most or all of the increase and prevent the final price from seeing a major rise, Apple could also cut cost on other things, like by not including a power adapter or EarPods. It is also said to be putting "higher bargaining pressure" on component suppliers.