The iPhone 12 and iPhone 12 Pro passed through the hands of experts from Fomalhaut Techno Solutions for dismantling. After analyzing the cost of the components used by Apple, they were able to determine their cost of production. The Pro version costs $ 406 to produce Apple, compared to $ 373 for the standard iPhone 12. Among the more expensive components is the Snapdragon X55 5G modem from Qualcomm.
In partnership with Nikkei, Fomalhaut Techno Solutions, a Tokyo-based research firm, boned the new iPhone 12 and iPhone 12 Pro. More upscale, iPhone 12 Pro costs $ 406 to produce. For its part, the standard iPhone 12 costs just $ 377 to manufacture.
For comparison, the production cost of the iPhone 11 Pro Max, last year’s most premium version, was estimated at $ 490.50. In 2018, Apple was paying $ 443 to make an iPhone XS Max. For its part, the iPhone X cost 357.50 € to produce. Not surprisingly, the manufacturing costs of the large-format models (with a large screen and larger battery) are higher than that of the more compact variants. Before drawing hasty conclusions on the evolution of the price, we will wait to obtain the production cost of the iPhone 12 Pro Max
5G modem provided by Qualcomm costs $ 90 per iPhone
In detail, the 6.1-inch OLED screen of the iPhone 12 and iPhone 12 Pro supplied by Samsung costs $ 70 per unit, or $ 5 more compared to that of the iPhone 11 Pro Max. The powerfull SoC A14 Bionic, based on an ARM architecture, costs just $ 40, $ 24 less than last year’s A13 chipset. RAM is estimated at $ 12.8 per unit and flash memory at $ 19.2 per unit. Finally, the sensors designed by Sony cost between 7.4 and 7.9 dollars per unit.
The 5G Snapdragon X55 modem sold by Qualcomm establishes itself as the most expensive component of the iPhone. Apple pays 90 dollars per iPhone. In order to get rid of Qualcomm, Apple reportedly launched the development of its own 5G modem in 2019. To speed things up, Apple bought out Intel’s modem division for $ 1 billion. Apple’s solution would be ready in 2021 for the release of the iPhone 13.
According to the findings of Fomalhaut Techno Solutions, 26.8% of the components come from South Korea, against 21.9% from Europe and the United States. As a reminder, the iPhone 12 and iPhone 12 Pro are respectively sold at a price of 799 dollars and 999 dollars in the United States (809 € and 1159 € in France). Of course, Apple doesn’t make $ 626-593 margin on every iPhone sales. Production costs do not take into account the substantial budget allocated to research and development, advertising or marketing. Likewise, this amount does not include taxes, such as VAT.