iPhone 12 Parts Cost About Rs 30,000 To Apple, But Phone Sells At Rs 80,000

With the new iPhones all the rage in the premium smartphone segment, Apple fans across the world are paying considerable prices for the models to get their hands on them.

Reuters

Of course, these prices are way beyond the real cost of the iPhones, as they incorporate a major chunk of profit that Apple wants out of the offerings. A new report now confirms this in numbers.

A new report by Japanese teardown firm Fomalhaut Techno Solutions has revealed the actual cost of making an iPhone. The report calculates the Bill of Materials for the iPhone 12 Pro, rounding it off to just $406, nearly Rs 30,000. In comparison, the price tag on the device is $999 in the US and Rs 1,19,900 in India.

In the teardown of the new Apple iPhones, the company reports that the most expensive components used in the devices are the Qualcomm X50 5G modem, used for providing 5G connectivity. Costing around $90, the modems are just a tad bit costlier than the OLED displays on the iPhones made by Samsung, which cost $70 each.

(Representative Image: Reuters)

Other costs leading to the total BoM of iPhones include $40 for Apple¡¯s A14 Bionic chipset, $12.8 for the RAM module, $19.2 for the flash memory and between $7.4 and $7.9 for the Sony cameras. Note that the firm estimates these costs per unit.

Those mentioned above are the costliest components on the prevalent lineup of iPhones. All other components cost much lower than the key ones above. With this, the BoM for the iPhone 12 comes out to be $373, around Rs 27,500. The iPhone model sells for Rs 79,900 in India.

Country-wise sourcing

The teardown also reveals the global markets from where Apple sourced its components. As per the report, most of the parts for the iPhone 12 series have been sourced from South Korea (26.8 percent), followed by 21.9 percent share from the US and 13.6 percent from Japan. Interestingly, Apple sourced only 4.6 percent of these components from China, which was deemed to be the biggest manufacturer of Apple iPhones to date.

The shift in sourcing the components was also made possible due to Apple¡¯s decision to incorporate Samsung OLED displays on all the four models. The company also sourced its batteries from Amperex Technology, a Hong Kong-based subsidiary of Japan¡¯s TDK.