Apple iPhone 12 Pro is much cheaper than what is being sold, when it comes to the components that are used in it. The bill of materials report for the iPhone 12 Pro has revealed the cost of the components used in the phone and it is much less than the asking price. The BoM for the iPhone 12 Pro is $ 406, which is almost Rs 30,000. To remind you, the iPhone 12 Pro costs $ 999 in the US and Rs 1,19,900 in India. The BoM for the iPhone 12 is $ 373, which is around Rs 27,500.
BoM’s prices for the two new iPhone 12 series models were revealed by Japanese teardown company Fomalhaut Techno Solutions. The company revealed that the most expensive components used within the iPhone 12 series phones are OLED displays made by Samsung and the Qualcomm X50 5G modem used to enable 5G connectivity in new iPhone models. The first component is estimated at $ 70 per unit, while the 5G modem costs around $ 90. The iPhone 12 series uses top-notch hardware components, so they are expensive.
The reason Samsung is a major contributor to this BoM for the iPhone 12 is the switch to OLED displays on all four models. Apple ditched the LCD screen in favor of OLED panels on new iPhone models. LCD screens were manufactured by Japan Display and other Apple vendors.
The Apple A14 Bionic chipset that is installed within the iPhone 12 series is estimated to cost $ 40 while the RAM module costs $ 12.8 per unit. Flash memory is $ 19.2 per unit. The Sony cameras the iPhone 12 uses cost between $ 7.4 and $ 7.9 per unit, depending on the estimate. These are mostly the most expensive components used in the iPhone 12 series. The value of the other components is less than that of these key components.
The report noted that Apple had to reduce battery capacity by 10 percent to make room for additional parts on the phone. The battery cells for the iPhone 12 are said to have been supplied by Amperex Technology, which is a Hong Kong-based subsidiary of Japan’s TDK.
The teardown has also revealed the markets where most of the components come from. The largest component sourcing region is South Korea with 26.8 percent, followed by a 21.9 percent share from the US In third place, top components come from Japan with a 13 percent share. , 6 percent. It is interesting to see that Apple has acquired only 4.6 percent of the total components of the iPhone 12 from China. China is the largest market for iPhone manufacturing.
Apple is seeing huge demand for the iPhone 12 Pro and iPhone 12 Pro Max ahead of the holiday season, according to renowned Apple analyst Ming-Chi Kuo. However, the iPhone 12 and iPhone 12 mini don’t sell above expectations, which favors Apple as its two high-end premium iPhone models are in high demand. Additionally, Apple’s MacBook, iPad, and Apple Watch product lines are also seeing strong demand in the US.
