Sci-tech

IPhone 12 Costs $431 to Make, 26% More Expensive than iPhone 11

IPhone 12 Costs $431 to Make, 26% More Expensive than iPhone 11”

Apple also is said to have adopted a new battery board that is reportedly 40-50% cheaper than the equivalent iPhone 11 part.

Now research firm Counterpoint has costed the individual components and estimated the total bill of materials (BoM) at $415, or 21% more than the iPhone 11.

It is worthwhile to mention that the most expensive components of the iPhone 12 are the display subsystem and the 5G RF components.

"The shift from LCD to OLED in the iPhone 12 is a big jump, resulting in an over $23 cost increase", says the company in a statement.

Producing a 128GB iPhone 12 mmWave (millimeter-wave) smartphone will cost Apple up to $431, 26% higher compared to the iPhone 11, according to the latest bill of materials (BoM) analysis by Counterpoint's component research practice. Apple also diversified its supply sources to save costs and split memory orders between industry leaders, as per the report. CIRP suggests that the now discounted iPhone 11 and XR models coupled with the affordable and compact iPhone SE 2020 were the key factors in the 12 mini's limited consumer interest.

More news: Vancouver schools announces plan for return to in-person schooling

For the A14 Bionic, Apple has used TSMC's 5nm process-powered application processor instead of 7nm.

This provides significant performance improvements in aspects of CPU, GPU and Neural Engine.

Explaining the increased component prices, the report said, in the iPhone 12, Apple's self-designed components including the A14 bionic, PMIC, Audio and UWB chip make up over 16.7% of the overall BoM cost.

Instead of sticking to the winning formula in 2020, Apple made a decision to shift the strategy once more by launching four models of iPhone 12 which includes a brand new iPhone 12 Mini. Counterpoint says that Samsung and KIOXIA (Toshiba) are supplying NAND flash, and SK Hynix and Micron are supplying LPDDR4X to Apple. Besides Qualcomm, other major content gainers are Skyworks, MURATA and Avago.



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