Apple iPhone 12 Components Makes It More Expensive: Analysis

An analysis of the components of the iPhone 12 family also provides an overview of what Apple has to spend on the hardware of its smartphones. For the iPhone 12, the company is spending a little more than 310 euros, for the iPhone 12 Pro parts Apple is spending 30 euros more.

The components from Apple in the cost analysis

Thanks to the Japanese economic experts from Nikkei for the precise insight into the economic calculation for everything to do with iPhone 12 components. Thanks to an analysis of Apple’s supply chain, they were able to carry out realistic and detailed research on all components used. The result: The components of the iPhone 12 cost Apple 313 euros – the market price of the iPhone 12 in Germany and some European countries is around 875 euros. In the iPhone 12 Pro, on the other hand, components are used at a price of 343 euros, compared to a retail price of 1,120 euros.

Calculating Apple’s profit from this would be wrong: In this case, the cost calculation only includes the pure acquisition costs for the components. The price of a smartphone is made up of many other factors. At Apple, these include above all development costs, but also costs for logistics and taxes that have to be paid specifically for the countries – for example, Gema in Germany charges 6.25 euros per smartphone.

5G modems cause high costs

GSM Arena then provides a further breakdown of the costs of the individual components. The most expensive component: The Qualcomm X55 5G modem costs Apple the equivalent of around 75 euros. The OLED display is in second place on the cost list. The production costs of the A14 Bionic processor are around 34 euros, while the corresponding RAM costs Apple a little more than 10 euros. Apple sources most of its components from South Korea, almost 27 percent, followed by the USA with almost 22 percent.