Bill of Materials Analysis Reveals Cost of iPhone 12, 21 Percent Higher Than iPhone 11

A lot of people complain about Apple’s new phones being too expensive because of the fact that this is the sort of thing that could potentially end up making it difficult for them to stay up to date with all of the latest models. With all of that having been said and now out of the way, it is important to note that Apple usually doesn’t set the prices so high simply due to the reason that it is trying to earn as much money as possible. Quite on the contrary, in a lot of situations the main reason why the prices are so high is because the cost of making the phone itself tends to be so high.

You can see the cost of iPhones by analyzing their bills of materials, and Counterpoint Research has done just that. The BoM analysis has revealed that the iPhone 12 is about 21% more expensive to make than the iPhone 11, and there are quite a few reasons for why this happens to be the case all of which will help you to understand the quality of the phone and the reasons behind the pricing.

The total cost for materials alone is $415. About 1/6th of that comes from Apple’s self designed components including the various chips that are used in the phone. 5G compatibility has also been a major driver of this price increase since 5G components tend to cost a lot more although these prices are expected to go down as 5G starts to become readily available. OLED screens are also $23 more expensive than LEDs, something that has further contributed to the higher price. Some might still say that Apple is keeping too hefty a profit margin, though, which is something that the tech giant is definitely going to want to try and address.

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