iPhone 12 material cost to build is said to be 21 percent higher than the iPhone 11 from last year, according to a report by the Counterpoint research firm. The report details the BoM (bill of materials) for the vanilla iPhone 12 128GB model, both the sub-6GHz and mmWave variants. Notably, the sub-6GHz iPhone 12 128GB storage model is said to cost $414 (around Rs 30,300) to make. This model is currently sold in all markets except the US and is priced at Rs 84,900 in India. The mmWave iPhone 12 model with the same storage costs $431 (approx Rs 31,500) to make, which is 26 percent higher than the cost of iPhone 11. The increase in making costs of the iPhone 12 can be attributed to the introduction of 5G and the shift from LCD to OLED display.
Furthermore, Apple’s components such as the A14 Bionic, PMIC, Audio and UWB chip make for over 16.7 percent of the overall BoM cost. The shift from LCD to OLED panel resulted in more than $23 (around Rs 1,600) cost increase. Separately, Samsung Display and LG Display are said to supply more panels for the iPhone, according to the report. 5G-related components like 5G modem, transceiver, and RF-front-end system collectively contribute a $34 (approx Rs 2,400) increase. Apple has used TSMC’s 5nm process-powered application processor that is said to cost over $17 (approx Rs 1,200).
Suppliers for display components, audio and battery include Broadcom, Cirrus Logic, NXP, Knowles, Goertek, ST, ASE/USI, AAC Technologies, and TI. Counterpoint claims the Cupertino giant had reduced its expenses on components like RAM, storage, camera subsystem, Face ID to offset the increased expenses. Apple is said to have diversified its supply sources to save costs and split memory orders, as per the report. Samsung and KIOXIA (Toshiba) are said to be supplying NAND flash, and SK Hynix and Micron are supplying LPDDR4X to Apple. As for the cameras, Apple had given orders to Sony, LG Innotek and Sharp.