Analyst: Apple trying to convince iPhone 12 component suppliers to give it a price break

In a note to clients — as noted by MacRumors — analyst Ming-Chi Kuo says Apple is trying to convince component suppliers for the upcoming “iPhone 12” to give them a price break as adoption of sub-6GHz 5G will increase the smartphones’s cost by US$75-$85.

He adds that the millimeter wave technology will mean a $125-$135 for the tech giant. While Apple has broadly been putting “higher bargaining pressure” on its suppliers, the battery board is one area where Kuo believes suppliers will see the biggest cost trimming with Apple reportedly moving to a simpler and smaller design with fewer layers. 

According to the Sellers Research Group (that’s me) Kuo is probably right. Apple is notoriously tight-fisted when it comes to money and is a tough, shrewd negotiator.

A report at Display Supply Chain Consultants (DSCC) — which I find reliable — offers details on Apple’s upcoming iPhone 12 line-up. The report says there will be four different models: the 5.4-inch iPhone 12 (starting at US$649), the 6.1-inch iPhone 12 Max (starting at $749), the 6.1-inch iPhone 12 Pro (starting at $999), and the iPhone 12 Pro Max (starting at $1,099).

DSCC says that all models will have a flexible OLED display from Samsung and/or BOE and LG Display. The report also says that the Pro and Pro oMax models will have XDR [extreme dynamic range] screen. XDR performance on its monitors is specified by Apple as 1000 nits of full screen brightness, 1600 nits of peak brightness, 1M:1 contrast, 10-bits of color and ~100% P3 wide color gamut. DSCC says the Pro Max will have a quad camera system (including a LiDAR TOF camera and a 12MP front camera).