Every year analytic companies publish a report on how much iPhone components cost for the latest model. Counterpoint Research has published a report with Bill of Materials (BOM) for the US version iPhone 12 base model. The components cost for iPhone 12 is $431, a 26% increase as opposed to iPhone 11.
As expected, the 5G module is responsible for the increase in cost. However, Apple seems to have saved considerably by ditching wall charger and EarPods with new iPhones. Furthermore, the compact packaging has also helped the company save considerably on logistics costs.
Producing a 128GB iPhone 12 mmWave (millimeter-wave) smartphone will cost Apple up to $431, 26% higher compared to the iPhone 11, according to the latest bill of materials (BoM) analysis by Counterpoint’s component research practice. Despite over $27 cost savings due to the simplified RF design, the BoM cost of the sub-6GHz-only model for overseas markets still increased by 18%.
Assuming a 38% mmWave mix, the blended materials cost for the iPhone 12 with 128GB NAND flash is nearly $415, a 21% increase over its predecessor. Application processor, 5G baseband, display and 5G RF components represent the major areas of the cost increase.”
Reasons for iPhone 12 Component Price Increase
The material cost for the iPhone 12 128GB is $415, which translates to a 21% increase instead of the iPhone 11. Apple’s A14 is faster and more efficient than its predecessor. It offers a significant performance bump over CPU, GPU, and Neural Engine. The A14 chip contributes to 16.7% of the overall cost.
The 5G module with multiple RF components has resulted in a blended cost increase. To be more precise, the RF subsystem costs $19. Yet another reason for an increase in component cost is the OLED display. The iPhone 12 comes equipped with an OLED display as opposed to LED on iPhone 11. This has resulted In a $23 cost increase.
That said, Apple is said to have lowered costs by using diversified suppliers. For instance, the orders for memory are divided between Samsung, Kioxia, and SK Hynix.[via Counterpoint Research]