Fomalhaut Techno Solutions and Nikkie Asian Review have released a report on the component costs for producing the iPhone 12 and iPhone 12 Pro. Accordingly, the production cost of the iPhone 12 is $373 (retail price $829), and for the iPhone 12 Pro, it is $406 (retail price $999).
The most expensive component in the iPhone 12 and iPhone 12 Pro is the Qualcomm Snapdragon X55 5G modem chip, which costs $90. Next is the OLED screen panel produced by Samsung, priced at $70.
The new A14 Bionic processor costs $40. RAM and flash memory are priced at $12.8 and $19.2, respectively.
The new iPhones are equipped with Sony’s CMOS camera sensor, which costs about $5.4 – $7.4.
The report also states that components produced in South Korea account for 26.8% of the total value of all parts in the iPhone 12. Components produced in the USA and Japan account for 21.9% and 13.6%, respectively.
China is where the iPhone 12s are assembled, but components produced in China only account for 5% of the total value.
It is evident that the retail price of the iPhone 12 is more than double the production cost, but this does not reflect Apple’s profit on each iPhone 12 sold. Apple also incurs significant expenses for research and development, software, salaries, and marketing.
According to TechInsights, the production cost of the iPhone 11 Pro Max last year was $490.5. Although we do not yet have the component costs for the iPhone 12 Pro Max, it seems that this year’s costs have risen compared to last year.
Source: phonearena