The iPhone 12 is powered by a cheaper battery than the iPhone 11s, analyst Ming-Chi Kuo reveals. In order to offset the cost of integrating 5G, Apple has reportedly decided to bet on less expensive components rather than excessively increasing its prices.
According to a new report by Ming-Chi Kuo, relayed by our colleagues at MacRumors, Apple does not wish to impose new price increases on its iPhone 12. This new generation will indeed be marketed at prices similar to those iPhone 11( between 809 usd and 1,259 usd).
Apple has put pressure on iPhone 12 component suppliers
However, Apple wants to be able to absorb the cost of integrating 5G without having to cut into gross margin and profits. According to the analyst, the addition of 5G 6 GHz comes with a cost increase of between $ 75 and $ 85. For 5G with millimeter waves (mmWave), the expert expects an increase of $ 125 to $ 135. The latest news is that all iPhone 12 models are said to be 5G compatible in the sub-6 GHz and mmWave bands.
To reduce costs, Apple has therefore decided to put pressure on its suppliers by asking them to offer more affordable components. The report refers to “higher negotiating pressure” than usual.
According to Ming-Chi Kuo, the main savings made by the Californian firm are on the side of the battery of iPhone 12. The design of the accumulator would be much simpler and smaller than that of the battery of iPhone 11. The component would be also composed of fewer successive layers than last year.
The battery of the iPhone 12 would be 40 to 50% cheaper than that of the previous iPhones. Ming-Chi Kuo expects Apple to apply the same logic in 2021 with the hypothetical iPhone 13. With a new, more flexible battery design, the company hopes to cut costs by 30-40% next year. Apple is also said to have acted in the same way with regard to suppliers of components for AirPods, always with the aim of lowering production costs without cutting into its margin.