Report: iPhone 12 is 21% More Expensive to Make Than iPhone 11

Apple's iPhone 12 is around a fifth more costly to make than an equivalent iPhone 11, based on an analysis of the blended materials by Counterpoint's component research practice.

iPhone 12 Layout

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.

According to the report, Apple's self-designed components including the A14 Bionic chip and Ultra Wideband (UWB) chip make up over 16.7% of the overall bill of materials cost, while the shift from LCD to OLED in the ‌iPhone 12‌ results in an over $23 cost increase.

The ‌iPhone 12 Pro‌ and ‌iPhone 12 Pro Max‌ start at $999 and $1,099, respectively, which are the same prices that the ‌iPhone 11‌ Pro and iPhone 11 Pro Max were when they launched in 2019. However, the 256GB and 512GB storage options for both ‌‌iPhone 12 Pro‌‌ models are $50 cheaper than their predecessors were at those capacities. Meanwhile the ‌‌iPhone 12‌‌ starts at $799, and the ‌iPhone 12 mini‌ starts at a more affordable $699 entry point – although sales of the latter device have reportedly disappointed Apple so far.

Apple is believed to have put a pricing squeeze on component suppliers to help offset increased costs for the new 5G technology and minimize the need for price increases. In addition, Apple is also said to have adopted a hybrid hard and soft battery board for the ‌‌iPhone 12‌‌ that is reportedly 40–50% cheaper than the equivalent part in the ‌iPhone 11‌ series.

According to Apple analyst Ming-Chi Kuo, Apple will push the envelope even more with the iPhone 13 lineup this year, adopting a purely soft board design that will shave off an additional 30–40% compared to the ‌‌iPhone 12‌‌ board price.

Related Roundups: iPhone 11, iPhone 12
Buyer's Guide: iPhone 12 (Neutral)

Top Rated Comments

k1121j Avatar
15 weeks ago
Well they are saving on chargers and headphones so...... no pitty party here
Score: 27 Votes (Like | Disagree)
Channan Avatar
15 weeks ago

I can believe it. My iPhone 12 Pro Max feels more expensive/robust than my iPhone 11 Pro Max did. The 11 did not feel cheap, the 12 just feels nicer. I didn’t realize how much I really liked my 4-5 series.
iPhone 11 to 12, not 11 Pro Max to 12 Pro Max.

And you probably only think it feels nicer because of the squared edges, because the housing of both are made from the same materials.
Score: 16 Votes (Like | Disagree)
gsmornot Avatar
15 weeks ago
I can believe it. My iPhone 12 Pro Max feels more expensive/robust than my iPhone 11 Pro Max did. The 11 did not feel cheap, the 12 just feels nicer. I didn’t realize how much I really liked my 4-5 series.
Score: 10 Votes (Like | Disagree)
InGen Avatar
15 weeks ago

Well, maybe 2020 wasn’t already the right moment to include 5G technology, don’t you think?
I have a 12 Pro and the first thing I did on day 1 was disable 5G. 4G speeds are more than sufficient for my needs and I’d rather increased battery life over that data speed increase. Not to mention lack of consistent coverage for 5G.
Score: 9 Votes (Like | Disagree)
gsmornot Avatar
15 weeks ago

iPhone 11 to 12, not 11 Pro Max to 12 Pro Max.

And you probably only think it feels nicer because of the squared edges, because the housing of both are made from the same materials.
I think it feels nicer because of the squared edges. Thats why I say I liked the 4-5 series, I like the squared edges of that series as well.
Score: 6 Votes (Like | Disagree)
Star Brood Avatar
15 weeks ago
I'd love it if they ditched the 5G and released a sub-$500 OLED iPhone.
Score: 5 Votes (Like | Disagree)

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