iPhone 12 Starting Price May Reach a New High Thanks to Larger & Expensive Logic Boards
A lot of you know by now that Apple’s iPhone 12 family expected to come in September of next year will consist of three models possibly sporting a Snapdragon X55 5G modem. Of course, this will mean that there will be a hefty number of internal design changes, which will present their own challenges for Apple and according to the latest report, this could result in larger and more expensive logic boards. That being said, future customers might bear witness to a higher iPhone 12 starting price in 2020.
The iPhone 12 Starting Price Could Be the Result of the Primary Logic Board Area Increasing by 10 Percent, Leading to Higher Production Costs
According to the latest note by revered Apple analyst Ming-Chi Kuo, AppleInsider reports that one reason why the iPhone 12 starting price may increase is due to a 10 percent size increase in the main logic board to incorporate advanced and newer technologies, such as a 5G modem. Since Apple’s A14 SoC said to be made on TSMC’s 5nm node will not feature an embedded Snapdragon X55 5G modem, the chip should be found separately on the logic board and as a result, it will use up more space, increasing size, and that’s just one example.
The increase in logic board size, the fabrication process as well as the new technology could incur a 35 percent increase in costs to build that component. Naturally, irrespective of how efficient the Snapdragon X55 should be in contrast to the Snapdragon X50, it will still generate a significant amount of heat, so the addition of an improved cooling solution, as well as better circuitry, should add to those costs. Now, AppleInsider reports that a 35 percent increase doesn’t mean the iPhone 12 starting price will increase by the same ratio; it’s just that the logic board manufacturing process will become more expensive.
It should be noted that other areas such as the fabrication of Apple’s next-gen A-series silicon coupled with those OLED screens are expected to add to that iPhone 12 starting price. According to a previous rumor, all models arriving next year possibly during the month of September are expected to ship with an OLED screen, thus shooting up manufacturing costs even more now that an LCD panel isn’t going to be part of the production, except when we talk about the iPhone SE 2.
As for Apple’s suppliers, the report states that the company’s current partners; Avary, EMC, and AT&S are expected to provide the logic boards.
What Other Variables Will Determine the iPhone 12 Starting Price?
Kuo talked about the presence of a new iPhone 4-like metal frame for the iPhone 12 series, which could add to the overall aesthetics score but should be costly to produce. Additionally, a new design and upgraded cameras should also result in an overall increase of the iPhone 12 starting price, so it’s not advised that you believe that simply a bulkier and more expensive logic board will be responsible for this apparent component price increase.
In any case, treat this info with a pinch of salt for now, and we’ll be back with more details in the future. For the time being, do let us know down in the comments if an increase in the iPhone 12 starting price will result in discouraged customers next year.
Image Credits: Ben Geskin
News Source: AppleInsider