Apple has been coping with soaring production costs as it has included 5G hardware in the latest iPhone 12 series set to arrive this year. To compensate for this high-priced hardware, Apple plans on using cheaper components in other sections of the device, reports analyst Ming-Chi-Kuo. A major portion of cost-cutting is expected to happen around battery engineering. According to Kuo, Apple plans on cutting down the number of layers in the battery board section. Instead, it plans on adjusting the battery components within a lesser area.
Owing to these changes, the price of the battery board is expected to go down by at least 40-50% compared to the battery-board of the iPhone 11 series, which states Kuo. The battery prices of iPhones that are expected to arrive in 2021 are expected to be even lower, at least by 30 to 40% more. This price decrease can be attributed to some more design changes. One instance of this is that these phones are expected to have a very soft board design.
Apple is also planning on reducing the battery prices of third-generation Airpods that are expected to arrive next year. These Airpods are expected to be having a ‘system-in-package’ design that is quite equivalent to the design used with Airpods Pro. And thus, the battery price would also go down automatically.
All of these changes have not been brought about to compensate just for the 5G hardware costs. According to Kuo, Apple is reported to have included the millimeter wave technology within the iPhone. Owing to this feature being embedded within the device, Apple could incur costs between $125 to $135 per unit, and additionally about $75 to $85 for sub-6GHz. Moreover, the firm has also taken a call not to have power adapters and earphones for all the iPhones slated to arrive in 2020. Looking at all of these techniques adapted by Apple, it looks like the tech giant is doing whatever is possible to cut down overall costs throughout the board.
This year, iPhones are slated to come on board in October. It is a delay of a few weeks when compared to the previous years. Apple CFO Luca Maestri confirmed it. During the organization’s quarterly earnings meeting, he stated that “As you know, last year we started selling iPhones in late September.” During that time, he did say that there would be a few weeks delay in the arrival of the iPhones.
The two devices may arrive in October and two in November. So far, there is no news on whether Apple would make announcements regarding the same in September like it does every year.
It seems like Apple is not the only smartphone manufacturer to adapt to cost-cutting techniques. Factually, all smartphone makers who have included 5G hardware in their devices have seen an increase in their production costs.
Apple is also planning to manufacture and release a purely 4G ‘iPhone 12’ device. It looks like Apple intends on getting this device to those markets where 5G hardware is yet to be developed. India could be one such market, as Apple is looking forward to bring the iPhone 12 onboard the Indian markets.
Image source: TheVerge