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Why Could Apple’s Next iPhone 12 Be Much Cheaper Than We Expected?

iPhone 12

While everyone is considering that Apple’s upcoming iPhone 12 could be the most expensive device ever, the latest reports from the popular leaker Ming-Chi Kuo recently told something interesting about the next iPhone 12.

According to Kuo, Apple will use the most affordable and less complex components on its iPhone 2020 device make up for the cost to use in the next-gen 5G hardware. He clearly claimed that Apple is putting “higher bargaining pressure” suppliers for cheaper parts.

He also stated that Apple’s next iPhone 12 battery cost is 40-50 percent cheaper when to compared them with the iPhone 11 series battery. So may it would have less battery capacity compared to the current iPhone 11.

The main reason for reducing the cost of iPhone 12 is because of the company is using the sub-6GHz 5G technology on the next device which is set to increase the cost of manufacturing by around $75 to $85. Also, the millimetre wave chips would cost the company another $125-$135, which will be used in the next iPhone 12.

The leaker also claimed that Apple’s next year iPhone would choose for a purely soft board design that will help the company to save more 30-40 percent over the board used inside the next iPhone 12 models.

As Apple is planning to use the 5G modem on the iPhone 12 which has a higher cost, still Apple wishes to keep the price of the iPhone 12 similar to the current iPhone 11 considering the pandemic.

Despite the increased cost of adding 5G to the 2020 iPhone 12 lineup, Apple wants to keep the price as close to the iPhone 11 series as possible, so as to keep sales momentum in the pandemic aftermath.

Kuo also stated that the AirPods could be cheaper too as the company is putting pressure on the circuit board suppliers for the AirPods 2 because the part has gotten 25-33 per cent after the first half of 2020. So Apple’s next AirPods 3 expected to come in the first half of 2021 with the low price than we expected. Same like AirPods Pro, the next AirPods 3 will move to an integrated system-in-package (SiP) over the surface-mount technology (SMT), used in the AirPods 2.

Talking about the release of iPhone 12, while some leakers are claiming that Apple could release its next iPhone 12 in October, the latest leak from Prolific Tipster Mark Gurman says that we can expect Apple’s Fall event earlier than usual on September 10.  But we haven’t heard anything from Apple about the release of next iPhone 12.

About the author

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Vineet Maheshwari

Vineet Maheshwari is a passionate blogger and relationship oriented digital marketing consultant with over 10 years of experience in SEO, PPC management, web analytics, domain investing, affiliate marketing and digital strategy. He has helped high tech brands connect with customers in an engaging manner, thereby ensuring that high quality leads are generated over time.

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