IPhone 12 Pro costs around $ 406 to make, with the most expensive component being Qualcomm’s 5G modem



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The iPhone 12 Pro recently received the teardown treatment, but even these experts were unable to provide details on the costs of components belonging to Apple’s flagship. Fortunately, a new report deals with the “ nomenclature ” of the iPhone 12 Pro. Surprisingly, the company has maintained its price at $ 999.99 despite sporting an expensive component; Qualcomm’s Snapdragon X55 5G modem.

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A cost breakdown of Fomalhaut’s components mentions the iPhone 12 Pro’s total amount coming in at $ 406. Nikkei also reports that 26.8% of these coins are from South Korea, while 21.9% are from companies based in the United States. This reveals that Apple is sourcing very aggressively from different vendors, which will likely lead to more price leverage. Unfortunately, one area where the California giant lacks an iron grip is purchasing 5G modems.

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With a deal made with Qualcomm, Apple is expected to stay with the San Diego baseband chipmaker until 2024, or when it has its own modem, which is still several years away, industry experts say. . This would explain why the Snapdragon X55 5G modem that works on all iPhone 12 models costs around $ 90 per unit. This makes the component more expensive than the OLED panel from Samsung, costing Apple $ 70 per panel. In fact, the latest estimates show that the company’s A14 Bionic costs less than half the price of the Snapdragon X55 5G modem, which is $ 40 each.

What makes the iPhone 12 Pro even more expensive in terms of parts is that Apple can consistently fix it while providing twice the internal storage of the base model and 50% more RAM compared to its direct predecessor, the iPhone 11 Pro. The “ nomenclature ” is, however, lower than the figure for the Galaxy Note 20 Ultra, which racked up a total of $ 549 in coins alone.

However, these component costs only tell half the story, as these costs are affected by the rate of return, which means Apple’s total spend could be higher. In addition, we did not take into account other costs such as R&D, operations, logistics, marketing and promotions, not to mention the investments in the supply chain. Looking at the $ 406 “ nomenclature ” figure, do you think the iPhone 12 Pro is priced right? Tell us in the comments, and while you’re at it, you can check out the individual components and the breakdown of their costs below.

  • OLED Panel for Samsung iPhone 12 Pro – $ 70 each
  • Qualcomm Snapdragon X55 5G modem – $ 90 per unit
  • A14 Bionic – $ 40 per unit
  • SK Hynix DRAM – $ 12.8 each
  • Samsung flash memory – $ 19.2 per unit
  • Sony CMOS sensors $ 7.4 – $ 7.9.

Image credits – iFixit



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