Apple that is looking to offset some losses owing to the 5G transition for its upcoming iPhone 12 may cut costs on minor components like the battery board.
According to Apple analyst Ming-Chi Kuo, the adoption of Sub-6GHz 5G technology is going to increase Apple’s costs by $75-$85, while the millimeter wave technology will incur a $125-$135.
Given these prices, the company is looking to cut costs on other components wherever it can, reports MacRumors.
Kuo believes the battery board is one area where suppliers will see the biggest cost trimming as the company is moving to a simpler and smaller design with fewer layers.
A hybrid hard and soft battery board for the iPhone 12 will reportedly be 40-50 per cent cheaper than the parts used in the iPhone 11 series.
Kuo says Apple will push the envelope even more with the “iPhone 12s” lineup in 2021, adopting a purely soft board design that will shave off an additional 30-40 per cent compared to the iPhone 12 board price.
Kuo’s research papers noted that Apple has been looking at circuit board suppliers to cut costs for its AirPods.
The AirPods 3, which are expected in the first half of 2021 will bring manufacturing costs further down.
Just like with the AirPods Pro, the AirPods 3 will move to an integrated system-in-package (SiP) over the surface-mount technology (SMT) that is used in the AirPods 2.