Apple to offset costly 5G iPhone components with cheaper battery tech

Looking to cut costs on next-generation hardware, Apple will adopt cheaper and less complex battery technology for so-called "iPhone 12," "iPhone 12S" and "AirPods 3" devices, according to TF Securities analyst Ming-Chi Kuo.

Starting with this year's expected "iPhone 12" family, Kuo in a note to investors on Friday said he believes Apple will reduce the number of "soft and hard" battery board layers and squeeze active cell components into a smaller area to achieve an average unit price 40% to 50% lower than iPhone 11. Looking ahead of 2021, Apple's "iPhone 12S" will ditch "soft and hard" boards for an all-soft architecture that should shave 30% to 40% off "iPhone 12" battery unit costs.The cost saving measures, coupled with increased bargaining pressure to drive down component prices, are anticipated to hurt current battery board suppliers.

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