The iPhone 12 will get 5G, Apple is finding ways to cut costs. And this should result in a price will not throw up a sticker shock in the middle of a pandemic.
Ming-Chi Kuo, a respected Apple analyst and an expert in the company’s Asian supply chains, described a new hardware decision in a note to investors, seen by AppleInsider and MacRumors.
To make room for the 5G technology inside the iPhone 12, Apple has reduced the number of layers in its cells, and its overall size shrinkage, according to Kuo. Apple has also put more pressure on all its component suppliers to ensure that it can get the parts it needs at the lowest price.
The changes to the battery designs apparently mean a 40-50% reduction in price compared to the iPhone 11 battery, with another 30-40% reduction coming next year with the batteries in the iPhone 13 (what Kuo calls the iPhone 12S).
This seems to be good news for those who are worried about the price of the iPhone 12. We have heard rumors that the 5.4-inch iPhone 12 could start as low as $ 649 or $ 699, which can be considerably less would be like the $ 999 Samsung Galaxy S20 and a heck of a lot less than the $ 1,299 Galaxy Note 20 Ultra.
However, there could be a compromise for this cost reduction. Kuo’s claim supports previous rumors we’ve heard about the smaller battery capacity of the iPhone 12. While the iPhone 11 range has batteries between 3,046 mAh and 3,969 mAh, the iPhone 12 range starts at a much smaller 2,227 mAh, with the largest of which 3,687 mAh.
These changes are also necessary for cost-saving reasons. Kuo says upgrading to sub-6Ghz 5G costs an additional $ 75 to $ 85 compared to standard LTE, while adding mmWave 5G costs $ 125 to $ 135 more. While Apple’s flagship iPhones are undoubtedly premium products, increasing their prices by so much without adding significant value to the experiences of most users with the phone would be a hard sell.
Fortunately, the new A14 Bionic chip is rumored to be up to 30% more efficient than the A13 chip. The A14 is based on a new 5nm manufacturing process.
Even with the battery changes, it will still not be enough to offset the price of the 5G antennas, and that is the reason why Apple is rumbling for more reductions.
We’ve heard before that Apple is removing the chargers and AirPods from the iPhone 12 box. This would help to reduce the price of each unit, but power bricks and wired earbuds may not be popular with customers who are accustomed to these being fitted with most new smartphones.
Kuo has a very good track record when it comes to predicting what Apple will do, but we’ll only find out for sure if he’s right at Apple’s launch event. It is thought that the unveiling of the iPhone 12 series, like the Apple Watch 6 and other new products, will take place in September and October.
In addition to its new batteries and 5G capabilities, the iPhone 12 will introduce a new A14 chipset and new handset size, the smallest option with a 5.4-inch display and the largest measuring 6.7 inches. The two iPhone 12 Pro models at the top of the range will also add a telephoto camera and a LiDAR sensor.
