Apple finalises its design of iPhone 12: Cheaper one will cost around $700

Kristina Ives

Kristina Ives

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September 6th 2020

According to the latest news from the upstream industry chain, Apple has completed the final design of the iPhone 12, and if there are no problems after the simple trial production verification, large-scale mass production will be started. However, due to this The work ended later than previously expected, so the release of the new machine will be delayed until October.

Apple finalises its design of iPhone 12: Cheaper one will cost around $700 image 1

Supply chain sources said that Apple may release the iPhone 12 series models in early October. Although this is its first model that supports 5G networks, it includes a total of 4 models, and it will be effective this year in the distribution of goods. For example, the cheap version of iPhone 12 is the first to be sold, and it will be shipped at the end of October.

Specifically, this year’s iPhone 12 models include a 5.4-inch, two 6.1-inch, and a 6.7-inch models. All models use OLED screens. At the same time, the built-in Qualcomm Snapdragon 5G baseband (model It is expected to be X55), equipped with a 5nm A14 processor based on TSMC.

There are differences in memory. iPhone 12 and iPhone 12 Max come standard with 4GB LPDDR4 memory, and iPhone 12 Pro and iPhone 12 Pro Max come standard with 6GB LPDDR4 memory. In terms of storage, cheaper version has 64GB and all the way to the top version has 512GB

In terms of camera specifications, both iPhone 12 and iPhone 12 Max are equipped with rear dual 12MP (5P) + 12MP (7P), and support single OIS optical image stabilization.

iPhone 12 Pro and iPhone 12 Pro Max have an extra 12 million pixel (5P) lens with dual OIS optical image stabilization, and the front lenses is unified to 12 million pixels (5P).

Simply put, this year's four iPhone 12 models are named: iPhone 12, iPhone 12 Max, iPhone 12 Pro, iPhone 12 Pro Max. In terms of screen size, iPhone 12 is similar to iPhone 8 and iPhone SE 2nd generation, iPhone 12 Max is an upgraded version of iPhone 11, and 12 Pro series is an upgraded version of 11 Pro series.

As for the price, iPhone 12 (US$699-749), iPhone 12 Max (US$799-849), iPhone 12 Pro (US$1,049-1099), iPhone 12 Pro Max (US$1149-1199). Regarding the exposed price, both the supply chain and Guo Mingchi stated that Apple will not significantly increase the price of the iPhone 12 for the sake of shipments.

This year, Foxconn has to produce 80 million iPhone units

According to the latest news from the industry chain, Apple has made clear targets for the corresponding suppliers. Although the iPhone 12 will be postponed, the new phone will be produced at most 80 million units this year. This is still very stressful for foundries.

According to supply chain sources, Apple will release four iPhone 12s this year, all of which support 5G networks. They will be released in two batches, the earliest being in mid-October, and the other batch in late October or early November, while Foxconn is still The largest OEM must bear at least 80% of orders.

Apple has previously confirmed that the iPhone 12 series that supports 5G networks will be launched a few weeks later than previous iPhones. The supply chain said that the delay in listing has reduced iPhone shipments to a certain extent, but in order to avoid this situation  Apple hopes that suppliers can increase the supply in a short period of time, and this year's iPhone 12 stocks are about 75-80 million units.

In addition, the supply chain also said that due to the upcoming mass production stage of the iPhone 12, the foundry needs more workers. As the main production plant, Foxconn Zhengzhou is currently looking for people with a lot of money. The conditions have increased compared with the previous ones, and the applicants are the highest. You can receive more than 10,000 yuan in bonuses to encourage more and more people to enter the factory.

Apple wants to shrink the new iPhone 12 to cope with the rising cost of 5G support

Due to the support of 5G networks, the cost of the iPhone 12 series will increase significantly, and Apple will shrink many details in order not to increase prices.

According to the report, each iPhone 12 that supports sub-6GHz 5G costs about US$75, and that for mmWave 5G models requires a cost of about US$125. If you include some upgrade costs for new phones that support 5G networks, then this year’s iPhone 12 is at least 30% more expensive than last year’s iPhone 11.

Industry chain sources pointed out that in the current economic environment is not optimistic, Apple will not easily increase its prices, so they have to carry out a series of adjustment measures, and ultimately will not pass on some cost increases to iPhone 12 consumers

It is reported that Apple’s reductions are currently focused on these aspects. The first is to adjust the battery printed circuit board. According to Guo Mingchi’s previous statement, the average price of the iPhone 12 battery board is 40-50% lower than that of the iPhone 11 because of the battery board specifications. Downgrade (decreased number of layers + smaller area); the new AirPods 3 to be released in the first half of 2021 will switch to SiP to reduce costs.

On the other hand, Apple may adopt huge price pressure on its suppliers to obtain the best component transactions. Apple was able to achieve this by procuring components from multiple suppliers instead of a single supplier, providing Apple with high price leverage to increase its profit margins.

Finally, another detail to reduce costs is that Apple may start with the iPhone 12 packaging box, such as canceling the charger and EarPods headset. The allegedly leaked iPhone 12 packaging picture shows that only the iPhone 12 body can be accommodated, and there may be room for a charging cable. There is also news that in order to improve its durability and prevent long-term wear and tear, this charging cable will use a braided cable Material.

Apple will cut the prices of iPhone 11 to grab new users

According to the latest report from foreign media, Apple will significantly reduce the price of iPhone 11 shortly after the release of the iPhone 12 series. According to the current statement, this new phones will be released as soon as September this year.

The price cut of the iPhone 11 will mean that Apple will have a unified choice of iPhones sold globally, and the lower price will also help them to compete other competitors, but not everyone will choose 5G Mobile phones, especially in the Asian market.

Therefore, despite the increase in the price of the iPhone 12, Apple hopes to reduce the price of the iPhone 11 to meet those users who have less strong demand for 5G and are relatively price sensitive

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