Due to increased production costs associated with 5G hardware in the latest iPhone 12 series, the company is looking to reduce costs by using less expensive components in other areas.
According to Apple analyst Ming-chi Kuo, Apple believes the biggest cost reduction will come from the iPhone battery technology.
Kuo says that the tech company is reducing the number of layers in the battery board and also placing the cell components in a smaller area.
The reduction will result in a battery board that is 40 to 50 percent cheaper than the equivalent parts on iPhone 11. Kuo says that next year’s batteries will see a 30 to 40 percent price decrease due to the design alterations.
Apple is also reported to be cutting down on the battery costs for third-generation Airpods due for release in 2021. They intend to do that by switching to a “system-in-package”design that is similar to the one used on Airpods Pro.
The changes will most likely offset overall costs and not just 5G hardware alone. Kuo says that adding the millimeter wave technology on the iPhone will cost between $125-$135 per unit including $75 to $85 for sub-6GHz. Overall, It seems that Apple is effecting the changes with a view to decrease costs across the board.
This year’s iPhones are due for release in October, a few weeks later than usual. It is however not known whether Apple will carry on with their traditional September announcement of the same, or if the company will wait until October when the release is due.