IPhone 12 BOM Reveals Retail Price More Than Double Its Value

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According to the report, the estimated Bill of Materials (BoM) cost for the iPhone 12, which starts at $ 829, is $ 373. The BoM for the iPhone 12 Pro is $ 406. The basic variant sells for $ 999.

Qualcomm’s 5G modem, Samsung’s OLED, and Sony’s sensors are one of the biggest contributors to the iPhone 12 BoM

The component that apparently inflated the iPhone 12 BoM the most is the Snapdragon X55 5G modem manufactured by Qualcomm, with a cost of $ 90 per unit. After that, we have the OLED panel, which costs $ 70. Samsung reportedly made the bulk of the displays and also made memory chips for the phones.

The A14 Bionic contributes around $ 40 to the iPhone 12 BoM, and RAM and flash memory cost $ 12.8 per unit and $ 19.2 per unit, respectively.

The new phones come with Sony’s CMOS image sensors and are reportedly priced between $ 5.40 and $ 7.40 per unit.

The report also states that the iPhone 12 is smaller than the iPhone 11, despite offering 5G connectivity, and at 162 grams, it weighs 32 grams less than its predecessor, thanks to a smaller battery and vibrating motor.

The battery capacity has been reduced by 10% and the motor has also been reduced to make room for additional parts.

South Korean coins represent 26.8% of the value of the iPhone 12

Components made in South Korea account for 26.8% of all iPhone 12 parts by value, and 21.9% and 13.6% of parts are sourced from the United States and Japan, respectively.

China remains the main assembly site, but the country only accounts for nearly 5% of parts by value.

While the iPhone 12’s retail price is more than double its BoM, that figure doesn’t represent pure profit.

The nomenclature indicates how much it costs a manufacturer to procure the components necessary to make a product and does not reflect other expenses such as salaries, marketing, research and development, and software.

The cost of parts for last year’s iPhone 11 Pro Max, which was $ 1,099, was $ 490.50 according to TechInsights.
While we don’t have the BoM for the iPhone 12 Pro Max yet, given that it’s largely identical to the iPhone 12 Pro, it doesn’t look like the total component cost has increased over the last year.

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