It’s no secret that Apple devices have one of the highest (if not the highest) margins among consumer electronics manufacturers. Experts from the Japanese research firm Fomalhaut Techno Solutions tried to estimate the production costs of the latest smartphones, iPhone 12 and iPhone 12 Pro.

The price of the iPhone 12 on the US market starts at $ 829 ($ 129 more expensive than the starting price of the iPhone 11), and in Ukraine – from UAH 31,999 (now there is a reduced price of UAH 29,999). The iPhone 12 Pro’s starting price in the US is $ 999 (in Ukraine – UAH 39,999).

According to Fomalhaut Techno Solutions, the iPhone 12 is $ 373, and the iPhone 12 Pro is $ 406. The difference in cost of components is only $ 33, with the base iPhone 12 Pro equipped with 128 GB of flash memory versus 64 GB for the regular iPhone 12. Simultaneously, the iPhone 12 Pro market price is almost $ 200 higher than the price of the iPhone 12.

The most expensive components are the display module, which includes protective glass and a 6.1-inch OLED panel from Samsung, and the Qualcomm X55 5G modem – $ 70 and $ 90, respectively. This is followed by the SoC A14 Bionic ($ 40), RAM ($ 12.8), and flash memory ($ 19.2). Sony sensors used in iPhone cameras range from $ 7.4 to $ 7.9 apiece.

Needless to say, Fomalhaut Techno Solutions’ assessment, like any other such study, does not take into account R&D, software development, distribution, and sales costs. In other words, we are not talking about a full-fledged cost price here, and it will not be possible to calculate the exact mark-up.

Analysts have calculated the cost of components for the iPhone 12 and iPhone 12 Pro - $ 373 and $ 406, respectively

iPhone 12 components supplied by Korean manufacturers account for 26.8% of the total cost. Another 21.9% of the amount is accounted for by American manufacturers. Suppliers from Japan, Taiwan, and mainland China followed – 13.6, 11.1, and 4.6%, respectively.

Tim Cook: “Apple always keeps prices as low as possible”

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