The iPhone 12 will have 5G and Apple is finding ways to cut costs. And the result should be a price that won't induce sticker shock during a pandemic.

Ming-Chi Kuo, a respected Apple analyst and the company's Asian supply chain expert, explained the new hardware decision in a note to investors seen by AppleInsider and MacRumors.

According to Kuo, Apple reduced the number of cell layers and reduced the total size to make room for 5G technology in the iPhone 12. Apple is also putting more pressure on all component suppliers to ensure that the necessary components are available at the lowest prices.

The change in battery design means a 40-50% price reduction compared to the iPhone 11 battery, and it appears that next year's iPhone 13 (which Kuo calls the iPhone 12S) battery will allow for another 30-40% price reduction.

This seems to be good news for those concerned about the iPhone 12 price. We have heard rumors that the 5.4-inch iPhone 12 will start at $649 or $699, which is considerably cheaper than Samsung's Galaxy S20 at $999 and considerably cheaper than the Galaxy Note 20 Ultra at $1299.

However, there may be a trade-off in this cost reduction: Kuo's claim confirms previous rumors that the iPhone 12 will have a smaller battery capacity. iPhone 11's battery capacity is 3,969 mAh, up from 3,046 mAh, while iPhone 12 battery capacity will start at 2,227 mAh and go up to 3,687 mAh.

These changes are also necessary for cost reduction reasons. According to Kuo, upgrading to sub-6Ghz 5G will cost an additional $75 to $85 compared to standard LTE, and adding mmWave 5G will cost an additional $125 to $135. There is no doubt that Apple's flagship iPhone is a premium product, but it would be difficult to raise the price so much without adding significant value to most users' cell phone experience.

Fortunately, the new A14 Bionic chip is rumored to be up to 30% more efficient than the A13 chip; the A14 is based on a new 5nm manufacturing process; the A13 chip is also based on the new 5nm process; the A14 chip is based on the new 5nm process.

Even with the battery changes, that alone is still not enough to offset the price of the 5G antenna, and thus Apple is rumored to be implementing further reductions.

We have previously heard that Apple will remove the charger and AirPods from the iPhone 12 box. While this would help lower the price of each unit, not including the power brick and wired earbuds may be unpopular with customers who are used to having these included with most new smartphones.

Kuo has a very good track record when it comes to predicting Apple trends, but we will see if he is right at Apple's launch event. iPhone 12 series, and the unveiling of the Apple Watch 6 and other new products in September or October September or October.

Besides a new battery and 5G capabilities, the iPhone 12 will introduce a new A14 chipset and new device sizes, with the smallest option having a 5.4-inch display and the largest a 6.7-inch display. The two top-of-the-line iPhone 12 Pro models will also add a telephoto camera and LiDAR sensor.