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The new iPhones are based on components that are worth less than 50% of their price, according to a simple calculation that speaks of Apple’s profit margin.
Japanese repair and assembly service engineers, Fomalhaut Techno Solutions, took each part of the iPhone 12 and iPhone 12 Pro separately, searched for their selling price, and calculated the total cost of components for the new Apple smartphones.
Components of the iPhone 12 cost $ 373, as its prices start at $ 800.
In the case of the Pro version, which sells for prices starting at $ 1,000, the total component price is $ 406.
The large differences between the cost of components and the price at which Apple sells its phones speak for themselves of the large profit margin that the American giant practices.
It is also true that not all the difference between the selling price and the cost of the components represents the profit margin. There are many other expenses Apple makes before iPhones hit the market, from research and development to distribution.
The most expensive components on the new iPhones are the Qualcomm X55 5G modems, which cost $ 90 per piece, and the OLED screens purchased from Samsung for $ 70 per piece.
The A14 Bionic chipset costs $ 40, a RAM unit costs $ 12.8, flash memory costs $ 19.2, and Sony camera prices on new iPhones range from $ 7.4 to $ 7.9 per piece.
Interestingly, although most of the assembly process takes place in China, most of the iPhone 12’s components come from South Korea, the United States, and Europe.
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