The price of Apple devices is always a meeting point for controversy, one of the most common arguments being the comparison of the manufacturing cost of the iPhone in relation to the price at which Apple ends up marketing this device, well, it seems that Apple, with the iPhone 12, has reduced the profits it makes for each unit sold. Read on to find out how much money Apple is “losing” with the iPhone 12.
The iPhone 12 is more expensive to make than the iPhone 11
According to an analysis of the manufacturing materials of the iPhone 12 by Counterpoint’s component research agency, the iPhone 12 is about one-fifth more expensive to manufacture than its predecessor, the iPhone 11. If we go to the exact figures, according to According to this study, it costs Apple $ 431 to manufacture an iPhone 12, which is a 26% increase compared to the cost of manufacturing the iPhone 11.
Reviewing the manufacturing costs of the iPhone 12, we find an interesting breakdown that specifies how much each part costs, from the 5G modem to the processor. However, it must be taken into account that investment in R&D, workers’ salaries and a long etcetera are not included here, which in the end is always taken into account to determine the final price. We assume that Apple’s profit rate with its devices is still high, this being already a standard in the company, but we could not even say that those 431 dollars is what the terminal costs the company.
And the iPhone 12 Pro and Pro Max? They seem to be “cheaper”
We have talked about the iPhone 12, but now it is the turn of its older brothers, or rather, its Pro brothers. According to this study, it seems that, comparatively, the iPhone 12 Pro and Pro Max are cheaper to manufacture than their predecessors in the capacities of 256 and 512 GB, specifically 50 dollars cheaper. And it seems that Apple has restricted the prices of component suppliers to cope with the increased cost of including 5G technology, in this way they avoid having to raise the prices of different devices.
But beware that this has not been the only cut that Apple has made to “lower” the cost of manufacturing the iPhone, it has also adopted a hybrid battery plate for the iPhone 12 that represents a saving of between 40 and 50% in relation to to that of the iPhone 11, a movement that will not remain here since, according to Ming-Chi Kuo, Apple proposes, for the iPhone 12, to adopt a purely soft plate design that will reduce an additional 30 to 40% in relation to that of iPhone 12. Let’s hope that these movements cause, at least, that the prices of these devices are maintained, since dreaming of a price drop in the iPhone sounds very surreal.
