The “iPhone 12” planned for autumn has a new SoC – the “A14” is expected – and 5G capability as well as other innovations in the electronic structure. This is what the renowned analyst Ming-Chi Kuo from the investment house TF International Securities from Taiwan assumes. In its latest report to investors, it says that Apple has screwed on the battery board, among other things. This is simpler and smaller than before and has fewer layers. The new hybrid hard-soft board will be between 40 to 50 percent cheaper than comparable components that Apple has used so far, according to Kuo.
New design, cheaper hardware
The new design is supposed to save space as well as costs, before the “iPhone 12S” will be completely converted to a soft board design in the coming year. That in turn should save another 30 or even 40 percent, according to Kuo. In addition to the simplified technology, Apple’s negotiating skills also ensure better component prices. According to Kuo, the company is said to have tightened the thumbscrews on the “iPhone 12”.
One of the reasons is that 5G technology is said to be quite expensive for the group. Sub-6 GHz wireless hardware is said to cost up to $ 85 in components, Kuo has found out. mmWave components for faster throughput at close range are said to cost up to $ 135. In order not to have to increase the prices for the “iPhone 12” too much – alternatively: to keep the margin high – the manufacturers of other components must now obviously bleed.
Apple is also pushing component prices for the AirPods
Apple has a lot of negotiating power due to its very large order volume and the dependency on suppliers with such contracts. This not only applies to the iPhone, but also to other popular products such as the AirPods 2. Here, Apple has been able to reduce the average price for soft and hard boards by up to 35 percent since the first half of 2020, apparently without major design changes.
In the end, the customer shouldn’t notice any of these deals. In the “worst case” scenario, he will have to pay prices for the “iPhone 12” that he has already paid for the iPhone 11 and 11 Pro – if Apple does not turn the price screw, which would have consequences for sales due to the corona crisis.