A research company has calculated the production costs of the iPhone 12. The latest device is considerably more expensive to make than an iPhone 11. This is mainly due to 5G parts.
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iPhone 12 production costs
The research was conducted by Counterpoint Research. They have calculated that the production costs of an iPhone 12 are 431 dollars, converted about 350 euros. This amount is determined by looking at the costs of the individual parts and adding them together. The new device is 26 percent more expensive to make than an iPhone 11.
The iPhone 12 has a suggested retail price of 912.10 euros. This means that Apple makes a gross profit of more than 560 euros on a device. However, the actual profit is probably a lot lower. All research, development, marketing, and logistics costs are not included in the $ 431 amount.
5G has a price tag
The addition of 5G in particular costs Apple a lot of money. According to Counterpoint Research, the US version of the iPhone 12 is especially pricey. This namely has technology (mmWave) to use the fastest version of 5G. A different version is sold in the Netherlands. It cannot handle the fastest version of 5G.
The switch from LCD to OLED screens costs Apple about 23 dollars extra per device. Other iPhone parts have become cheaper. For example, the research firm has calculated that the A14 chip of the iPhone 12 is about 17 dollars cheaper than the A13 variant from the iPhone 11. It is unknown what the production costs for an iPhone 12 mini, iPhone 12 Pro and iPhone 12 Pro Max amounts.
About the iPhone 12
“The new standard” is what we call the iPhone 12 in our review. The device has many similarities with the more expensive Pro iPhone, but for hundreds of euros less. The iPhone 12 has, among other things, a renewed design, OLED screen, MagSafe support and 5G. Read all about our experiences in the iPhone 12 review, or watch the video version below.