iPhone 12 Costs Will Be $80 Higher Due to 5G Support and Apple Has Placed 85 Million Orders

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2020 will be a key battle for Apple. After Android rivals have already come up with 5G Smartphones and even achieved millions of shipments, iPhone 12 will also follow up this year. Earlier, Apple had settled with Qualcomm, thinking that the iPhone 12 would return to Qualcomm’s 5G baseband as a pavement.

In the latest investment analysis report from Wall Street Nomura Securities, Apple has placed 75 to 85 million iPhone 12 handsets for the second half of this year. The analysis said that the 5G-led wave of phone replacements will ensure that Apple’s revenue this year will achieve steady growth.

Previously, JP Morgan Chase (JPM) had forecasted Apple ’s shipments by fiscal year, with 189 million in fiscal 2019, 198 million in fiscal 2020, and 207 million in fiscal 2021. Since Apple’s fiscal year is from October 1 to September 30, the iPhone 12 shipments are mainly reflected in fiscal 2021, and a clear increase can also be observed from the table.

However, one thing may make potential purchasers a bit frustrated. After analyzing the BOM list of the iPhone 12, Nomura believes that the cost of components will increase by $40 to $80, mainly due to 5G baseband, etc. Relevant components are expensive, and it is no surprise that the iPhone 12 series will rise in price.

Read Also: iPhone 12 Lineup Expected to Get Up to 6GB of RAM

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