Apple Inc. (NASDAQ:AAPL) has been using less expensive components for its “iPhone 12” series in cut costs and meet growing demand. This is according to analyst Ming-chi Kuo. The phone maker has been facing increasing demand for the new series due to the inclusion of 5G.
According to Kuo, Apple has reduced area for placing cell components and reduced the number of layers. Kuo says the move has led to between 40 and 50% cheaper battery board compared to parts on iPhone 11’s. Trends will extend to iPhone batteries that will be made next year, which are expected to bet between 30 to 40% cheaper due to use of less expensive battery technology.
Changes likely to affect other iPhones too
According to Kuo, the new changes will not affect 5G phones alone. The company is cheaper battery technology to avoid additional costs amount to between $12 and $135. In addition, the company is cutting between $75 and $85 for sub-GHz.
Apple Shining amid the pandemic
Although Apple has been around for a while, its shares have continued to rise over the years. The company currently has a market capitalization of $2 trillion. Apple became the first company to be valued at more than a trillion in 2018. The company took just 21 weeks to attain its second trillion.
The rise in Apple’s market value can be attributed to a number of factors. There has been growing demand for tech stocks as people embraced technology in the midst of the pandemic. During the COVID-19, lockdowns have been imposed worldwide, which made people turn to technology to stay connected.
The rise in demand for technology has seen other tech stocks like Facebook and Amazon also soar during the pandemic. In addition, the rise in demand for tech stocks saw the S&P 500 index hit a record on Tuesday. Apple has achieved a lot with its iPhone, which caused a revolution in the mobile computing industry. As opposed to other premium products in the tech industry that fetches less in profit margins as they mature, iPhones have maintained an upward trajectory since its launch.