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 Forum: iPhone

Top Rated Comments

k1121j Avatar
38 months ago
Well they are saving on chargers and headphones so...... no pitty party here
Score: 27 Votes (Like | Disagree)
Channan Avatar
38 months 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
38 months 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
38 months 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
38 months 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
38 months ago
I'd love it if they ditched the 5G and released a sub-$500 OLED iPhone.
Score: 5 Votes (Like | Disagree)

Popular Stories

apple card 1

Apple Ending Apple Card Partnership With Goldman Sachs

Tuesday November 28, 2023 3:09 pm PST by
Apple is ending its credit card partnership with Goldman Sachs, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, and it is not yet clear if Apple has established a new partnership for the Apple Card. Apple and Goldman Sachs will dissolve their entire consumer partnership, including the Apple Card and the Apple Savings account....
ios 17 namedrop

Police Departments and News Sites Spreading Misinformation About How iOS 17 NameDrop Feature Works

Monday November 27, 2023 5:11 pm PST by
Apple with iOS 17.1 and watchOS 10.1 introduced a new NameDrop feature that is designed to allow users to place Apple devices near one another to quickly exchange contact information. Sharing contact information is done with explicit user permission, but some news organizations and police departments have been spreading misinformation about how functions. As noted by The Washington Post,...
Apple Logo

Apple Discontinued These 5 Products This Year

Monday November 27, 2023 7:03 am PST by
As the end of 2023 nears, now is a good opportunity to look back at some of the devices and accessories that Apple discontinued throughout the year. Apple products discontinued in 2023 include the iPhone 13 mini, 13-inch MacBook Pro, MagSafe Battery Pack, MagSafe Duo Charger, and leather accessories. Also check out our lists of Apple products discontinued in 2022 and 2021. iPhone Mini ...
iOS 17

iOS 17.1.2 Update for iPhone Likely to Be Released This Week

Monday November 27, 2023 8:24 am PST by
Apple will likely release iOS 17.1.2 this week, based on mounting evidence of the software in our website's analytics logs in recent days. As a minor update, iOS 17.1.2 should be focused on bug fixes, but it's unclear exactly which issues might be addressed. Some users have continued to experience Wi-Fi issues on iOS 17.1.1, so perhaps iOS 17.1.2 will include the same fix for Wi-Fi...
iOS 17

Everything New in iOS 17.2 Beta 4

Tuesday November 28, 2023 12:18 pm PST by
Apple is wrapping up development on iOS 17.2, with the update expected to come out in December. While we're getting to the end of the beta testing period, Apple is still tweaking features and adding new functionality. We've rounded up everything new in the fourth beta of iOS 17.2. Default Notification Sound Under Sounds & Haptics, there's a new "Default Alerts" section that allows you to ...
All New CarPlay Five New Features Article 2

What to Expect From All-New CarPlay, Still Listed as Coming 'Late 2023'

Tuesday November 28, 2023 7:44 am PST by
At WWDC in June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, increased personalization, and more. Apple's website still says the first vehicles with support for the next-generation CarPlay experience will be announced in "late 2023," but it has not shared...
Google Drive

Some Google Drive Users' Files Have Mysteriously Vanished

Tuesday November 28, 2023 3:55 am PST by
Google Drive users have been warned not to disconnect their account within the Google Drive for desktop app, after a spate of reports of files going missing from the cloud service. Alarm bells began ringing last week on Google's community support site when some users reported files mysteriously disappearing from Google Drive, with some posters claiming six or more months of data had...