Apple’s iPhone 12 costs 21% more to manufacture than an equivalent iPhone 11 model, says an analysis of the involved materials by Counterpoint’s component research practice.
The latest bill of materials (BoM) analysis by Counterpoint’s component research practice says producing a 128GB iPhone 12 mmWave (millimeter-wave) smartphone costs Apple up to $431, which is 26% higher compared to the iPhone 11.
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.
The report indicates that Apple’s self-designed components, which include the A14 Bionic chip and Ultra Wideband (UWB) chip, make up over 16.7% of the overall bill of materials cost. The report says the shift from LCD to OLED in the iPhone 12 resulted in an over $23 cost increase.
Apple reportedly put a price squeeze on component suppliers to help offset the increased costs Apple faced in adding 5G technology. Apple also is said to have adopted a new battery board that is reportedly 40-50% cheaper than the equivalent iPhone 11 part.