14 DAY TRIAL // We’ve known for a while that iPhones are among the most expensive smartphones on the market, and if you’re wondering how, it’s all because of the typical mix of component costs, research and development, and Apple’s very own margin.
And according to a report from Nikkei, the iPhone 12’s components cost just $373, while Apple pays for iPhone 12 Pro parts just $406. If you’re wondering, the iPhone 12 Po can be yours from $999, so Apple has more than double the Bill of Materials cost for this particular model.
Needless to say, the 5G chip available on the iPhone 12 is the one that’s the most expensive. Apple has invested massively in 5G capabilities, and all models launched this year come with such features, all thanks to Qualcomm’s Snapdragon X55 5G modem.
Thank you, South Korea!
The aforementioned source claims the modem costs no less than $90 per unit. The OLED panel that’s installed on the iPhone 12 is rather expensive too, as Apple pays $70 for it, while the Bionic chip, which the company is always making a big fuss about it, has an estimated cost of $40.
In case you’re wondering how expensive is the camera that’s available on the iPhone, you’ll probably have a shock here. The Sony CMOS image sensors go as low as $5.40 per unit, according to the BoM.
Most of the parts used on the iPhone 12 come from South Korean companies, while Europe and the United States share the runner-up spot. South Korean manufacturers supply 26.8 percent of the components in the iPhone 12, way ahead of Europe and America with 21.9 percent each. Japan also contributes to making the iPhone 12 happen with 13.6 percent of the parts, while Taiwanese companies account for 11.1 percent.