Apple is gearing up to launch the next set of iPhones. This time around, Apple is expected to use cheaper and less complex components for the iPhone 12 series. The popular analyst Ming-Chi Kuo has suggested this would happen to help in keeping the price hike in control, which was expected due to the usage of a 5G modem.
According to a report by MacRumors and AppleInsider, Kuo has claimed that Apple is putting “higher bargaining pressure” on suppliers for cheaper parts. The suppliers are expected to start cost-cutting by using a better battery board on the iPhone 12. This will bring the cost of the part 40-50 per cent down when compared to the iPhone 11’s battery board.
While Apple fans might be shocked to hear this, but this cost trimming will help the company keep the costs in control. Due to the use of the sub-6GHz 5G technology, the cost of manufacturing will increase by around $75 to $85. That is not where the 5G goodness ends. Apple will also be going in with the millimetre wave chips that would further cost the company another $125-$135.
Ming-Chi Kuo has also suggested that the upcoming iPhone models will use a purely soft board design. This will help the Cupertino-based giant to save another 30 to 40 per cent on the boards.
Not only the new iPhone models, but the upcoming Apple AirPods are also said to be quite cheaper than expected. The company is said to take a similar approach where they will do cost trimming on the boards used inside the truly-wireless earphones. This should significantly reduce the price of the third-generation Apple AirPods.
Meanwhile, Apple has been in the news lately as they have just reached the market capitalization of $2 trillion. While that has been a moment of celebration, what has proved to be a nightmare for the company is the lawsuit filed by Epic Games.