In Ming-Chi Kuo’s latest TF Securities report, the Apple analyst estimates the cost of adding 5G to this year’s iPhone. Kuo estimates that it will cost Apple about $ 75 per unit for sub-6GHz 5G support, and up to $ 125 for millimeter-wave 5G.
Kuo does not expect Apple to pass on any cost increases to the consumer sales price of the iPhone 12. This means that Apple is looking to offset 5G component costs by looking for cost savings elsewhere in the phone. Kuo names the battery-printed circuit board as one area where Apple downgraded its specifications.
Kuo says the cuts at the expense of internal parts will have almost no noticeable effect on user experience. Apple is also aggressive in applying price pressure to its suppliers to source the best deals for components.
One area where Apple seems to be saving money is with the bundled accessories. The lineup of the iPhone 12 is not expected to include headphones as a powerhouse in the box.
Many manufacturers of Android phones have had to increase prices to cover the cost of adding 5G to their models. If Apple can keep iPhone prices relatively stable, despite the addition of next-generation cellular networking, it will help to compete in the smartphone market amid weaker macroeconomic trends as a result of the pandemic.
The lineup of the iPhone 12 will consist of four separate models, all featuring OLED screen technology for the first time. The form factor will return to the iPhone 5 with flat, square edges similar to the 2020 iPad Pro design. There will be a new smaller 5.4-inch screen size, two 6.1-inch models and a new 6.7-inch ‘Max’ high-end model. Apple has publicly confirmed a slight delay to the typical release schedule, which means the iPhone 12 will launch in October this year.
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