The Apple iPhone 12 Pro was built using components that are worth $406 only, which is roughly Rs 30,000.
- Apple iPhone 12 Pro has a Bill of Materials of $406, roughly Rs 30,000.
- The Bill of Materials for the iPhone 12 is $373, which is roughly Rs 27,500.
- The iPhone 12 Pro sells for Rs 1,19,900 while the iPhone 12 costs Rs 79,900.
Apple iPhone 12 Pro is way cheaper than it is selling for, as far as the components used on it are concerned. The Bill of Materials report for the iPhone 12 Pro has revealed the cost of the components used on the phone and it is way too less than the selling price. The BoM for the iPhone 12 Pro is $406, which is nearly Rs 30,000. To remind you, the iPhone 12 Pro costs $999 in the US and Rs 1,19,900 in India. The BoM for the iPhone 12 stands at $373, which is around Rs 27,500.
The BoM prices for both new iPhone 12 series models were revealed by Japanese teardown firm Fomalhaut Techno Solutions. The company revealed that the most expensive components used inside the iPhone 12 series phones are Samsung-made OLED displays and Qualcomm X50 5G modem used for enabling 5G connectivity on the new iPhone models. The first component is estimated at $70 per unit while the 5G modem costs around $90. The iPhone 12 series uses top-level hardware components, which is why they are pricey.
The reason why Samsung is a major contributor to this BoM for the iPhone 12 is the switch to OLED displays on all four models. Apple ditched the LCD in favour of OLED panels on the new iPhone models. The LCDs were made by Japan Display and other suppliers for Apple.
The Apple A14 Bionic chipset that is fitted inside the iPhone 12 series is estimated to cost $40 while the RAM module goes around for $12.8 per unit. The flash memory is $19.2 per unit. The Sony cameras that the iPhone 12 uses cost between $7.4 and $7.9 per unit, according to the estimation. These are mostly the costliest components that are used on the iPhone 12 series. The value of the rest of the components is lower than those of these key components.
The report has outlined that Apple had to cut the battery capacity by 10 per cent to create space for additional parts on the phone. The battery cells for the iPhone 12 are said to have been supplied by Amperex Technology, which is a Hong Kong-based subsidiary of Japan’s TDK.
The teardown has also unveiled the markets where most components are sourced from. The biggest component sourcing region is South Korea with 26.8 per cent, followed by 21.9 per cent share by the US. At the third spot, the maximum components sourced are from Japan with a 13.6 per cent share. It is interesting to see that Apple has sourced only 4.6 per cent of the total components for the iPhone 12 from China. China is the biggest market for iPhone manufacturing.
Apple is witnessing a high demand for the iPhone 12 Pro and iPhone 12 Pro Max ahead of the holiday season, according to the renowned Apple analyst Ming-Chi Kuo. However, the iPhone 12 and iPhone 12 mini are not selling higher than the expectations, which goes in favour of Apple since both its premium, high-billed iPhone models are in high demand. Alongside, the Apple product lines of MacBook, iPad, and Apple Watch are also witnessing strong demand in the US.