- The 5G iPhone 12 price will not be as expensive as its Android flagship phones launched so far this year, reports a famous insider.
- Apple is apparently looking to cut production costs everywhere, as the 5G modem and antennas will cost anywhere between $ 75 and $ 135 per device, depending on 5G technology.
- Ming-Chi Kuo said in a note to investors that the iPhone 12 battery will get the biggest cost savings as Apple moves to a simpler design.
Android handsets have become increasingly expensive since Apple first broke the $ 1000 barrier with the iPhone X three years ago. At the same time, Apple launched cheaper and cheaper iPhones, and the $ 699 iPhone 11 proved to be a massive success, just like its predecessors. The morning of 2020 brought us the first Android flagships of the year, with Samsung delivering quite a surprise. The cheapest Galaxy S20 starts at $ 999. Fast forward to mid-August, and the Galaxy Note 20 is just as expensive as it has even more compromises. The “problem” with these new flagships from Android is that they all support 5G, and the 5G components are expensive. The Snapdragon 865 chip, the 5G modem, and the 5G antennas all contribute to the sky-high price of these handsets. Even the OnePlus 8 Pro is not the affordable flagship killer the company once made. The 5G parts are so expensive that even Google reports an unusual choice for the Pixel 5; the phone will not come with the top Qualcomm mobile chip under the hood to cut costs.
This brings us to Apple’s iPhone 12 series, all phones that support 5G connectivity. Apple also has a component cost issue, one that repairs differently than others, according to several leaks. But Apple’s phones will all run on the same powerful chip, they will not compromise on build quality, and they will not start at $ 999.
The A-Series chip is Apple’s biggest advantage over Android, and Apple will not give it up. The iPhone SE is the best example of that. It is an iPhone 8-like device that has the same processor as the iPhone 11 phones. The iPhone 12 models will all get the 5nm A14 chip and offer the same high end-to-end performance.
All handsets will likely be made of glass and metal. Apple would never go for plastic, as Samsung just did.
Coronavirus years or not, Apple has learned a thing or two from its three generations of iPhones that started with the iPhone X. The iPhone XR and iPhone 11 proved to be the best new phones for most people. You get tremendous value for that $ 699 price tag of the iPhone 11, with the Pro’s rear camera the only real advantage over the regular model. The Pros also get better storage options and water resistance, as well as better displays and better battery life (especially on the Pro Max).
Add to that the health and economic crisis to it all, and you know that Apple can not pay too much with the entry price of the iPhone 12.
The company still needs to add 5G support to all models, and analyst Ming-Chi Kuo just gave us a look at what those extra costs are. The Sub-6GHz version of 5G will cost Apple an extra $ 75- $ 85 in parts, while the technological millimeter wave is even more expensive, at $ 125- $ 135.
The analyst said in a note to investors looked through MacRumors that Apple has invented a way to reduce costs elsewhere. The battery board will give Apple the biggest savings, Kup says. Apple is moving to a simpler and smaller design that has fewer layers. The iPhone 12 battery will be 40% to 50% cheaper to make than the iPhone 11, thanks to a hybrid hard and soft battery board. In the future, Apple will use a softboard design that cuts prices by 30% to 40% compared to the iPhone 12 battery.
This may be a small detail in the grand schemes of things, and cuts to battery life alone cannot help Apple make the extra cash it pays for 5G modems and antennas. Unlike Android handset makers, Apple is already designing its own chip, which will further help reduce costs.
Let’s also not forget that the iPhone 12 is expected to ship the first iPhone generation without a charger or free EarPods in the box. That should further help Apple cut costs, while Apple also supports the tone set for a future generation of portless iPhones.
Apple will launch the iPhone 12 in mid-October, a leaker said recently, with the cheaper models slated to hit stores a week later. The iPhone 12 Pros may take a few weeks longer to ship to buyers.
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