Apple iPhone 12 Pro's bill of materials comes up to $406

25 November 2020
South Korean components take up the largest share of the new iPhones.

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Alex, 27 Nov 2020I don't think you get economics very well bud. They�... moreMan i run a phone shop company and so i can have anything my store can buy for price almost equal to manufacturing costs this is pure robbery.
If i order from Foxconn at Zhengzhou i get price i want.
Knowing the exact people and having an exact reliationships with them is like a best deal and i dont need to wait for a black friday,

  • Alex

CptPower, 27 Nov 2020So cost to make 406 in half year it will be 30% less and co... moreI don't think you get economics very well bud. They're "selling", not "giving away". Just like Samsung doesn't sell their Note 20 Ultra for 699 or 799. Life is unfair man, those companies just want to make money from us, damn, so unexpected!

  • Alex

Anonymous, 27 Nov 2020Meanwhile, Android already sold 350 million phones in the s... moreI don't think you understand how this things work. No company can have half of the market share, especially one that doesn't sell a phone from less than 400$. Or 600$ if it's in Europe. Dudes really be making an argument that Apple doesn't sell more than Android and that they have no excuse for it. Because Samsung or Xiaomi have excuses to not selling as much as Apple and all the other Android manufacturers. What a clown

  • Anonymous

Q, 27 Nov 2020iBois ALWAYS mocked others while they themselves are '... more-Outdated design with ugly notch and ugly gas burner design on back.
-Display that gets easily scratched by putting phones on top of each other.
-No audio jack.
-No SD card slot.
-No dedicated cooling mechanism like vapor chamber system.
-No bundled charging brick.
-No bundled headphones.
-Cheap quality usb cable.
-No standard usb type C.
-Tiny battery.
-No dual sim 5g.
-Ancient 60hz display.
-Weak fast charging (wired and wireless).
-No super slow motion video recording.
-No 4k@120fps or 8k video recording.
-No periscope camera.
No additional camera features like wind noise filter, zoom mic, etc.
-Handicapped nature of cameras other than main sensor.
-No performance mode.
-No gamespace.
-No proper file management.
-No seamless connectivity with devices other than Apple devices.
-No theme store which facilitates in changing the look of the device with one click.
-Half baked widget system.
-Limited customization ability.
-Users have to beg for new features.
-Introducing gimmicks under the name of new features like LIDAR, magsafe, Ceramic Shield or Dolby vision recording.
-Overpriced products and accessories.
-No 3rd party repairabilty leading to high servicing costs.
-Limited Product Catalogue.
-No privacy, company specializes in giving users the illusion of privacy.
-Dead in innovation department despite being worth trillion dollars.
-Looting the customer base under the disguise of saving the environment.
-Blaming the user for their hardware failures like AntennaGate.
-Deliberately slowing down phones and battery through software updates.
-Handicapped nature of the OS where an user has to jump through multiple different steps to get basic things done.
-Duping users into buying into the 5 year update scam where they give latest features 5-10 Years late.

  • Anonymous

Wily2020, 27 Nov 2020I just leave this here "Ives is currently predicti... moreMeanwhile, Android already sold 350 million phones in the same time frame.
Now don't say iPhone is one company and Android are multiple companies. Nobody told Apple to restrict themselves to iOS and few devices per year.
3 billion satisfied Android customers are laughing at the numbers you just quoted.

Q, 27 Nov 2020iBois ALWAYS mocked others while they themselves are '... moreI just leave this here

"Ives is currently predicting that Apple suppliers will ship 80 million iPhone 12 units in the initial launch period, with sales just less than 90 million possible, but on the outside edge of the prediction model."

See? No-one cares :D

  • Q

Wily2020, 26 Nov 2020He's clearly just in very big denial like most Apple o... moreiBois ALWAYS mocked others while they themselves are 'in denial' MOST OF THE TIME; when Android got some 'real innovation' (fold-able screen, super fast charging, high refresh rate, VR, 5G, widgets, etc) iBois ALWAYS mocked them as gimmick; until they present in the latest iOS updates, at least (LOL).

Wanna know other hard facts which proved iBois are in denial 24/7?
- NO Fingerprint scanner (claimed that faceID is 'better'; in Android, u could get ALL)
- NO charging brick (at least, the recent flagship, even the cheap Realme & Redmi got 30w brick out of the box)
- Handicapped Bluetooth for 13 years straight (u get FULLY functional Bluetooth in Android since Android 1.5 era!)
- VERY limited internal storage (good luck shelling another hundreds of $ just to get 128GB lol; OTHER OS allows microSD to store multimedia files so the internal could be used solely for apps & systems)
- Same old for design for more than 3 years (while Android has moved to motorized camera, foldable display, brighter camera (f/1.5), HRR, etc)
- NO Dual-SIM version (except when u import ones from China)
- NO WAY to repair except shelling 400$++ to go to Apple service center (unless u buy Apple care which also priced ridiculous)
- NO dedicated cooling solution to sustain the 'infamous' Bionic chip (read:overheating then throttling) (LOL, paying 800++$ for overheating device who claimed 5 years software update while the hardware themselves won't survive 18months (SD810 was the VERY best example)
- NO 3.5mm jack (know why many OEM STILL support 3,5mm jack in their flagship? OEM do realize that TWS are nowhere good enough to replace wired)
- NO USB 3.1 transfer speed (good luck waiting & wasting time just to wait ur files transferred; believed it or not, transfering FHD videos to & from iphones are pain in the ass because their transfer speed, since time immemorial, are USB 2.0).

So cost to make 406 in half year it will be 30% less and cost to sell 999.
Pure greed.
Final price of this should be no more than 699.

  • LookslikeApplegotGqv

Looks like gqv couldn't handle Apple and he's gone now, hope he's fine, but this was best for him he was losing it.

Anonymous, 26 Nov 2020The real price is never just the cost of materials and it w... moreOh yeah R&D + manufacturing sure is expensive when you've got Chinese workers being paid pennies an hour to complete 90% of the process.

  • Anonymous

Let’s get this out the way first. Apple or Android? Who cares. Let’s move on.

Because, blооdy hеll, some of these comments are painful to read.

Have any of these people ever been involved in the running of a business? All things considered, a BOM of 406 and a retail price of 999 for the iPhone seems fairly reasonable to me. The product is priced competitively; at 999 it’s not an outlier in the market for flagship phones, and if Apple can achieve a BOM of 406 then I see no issue with that whatsoever. They’re maximising their profits without compromising their position in the market, as any healthy business should do.

What is a competitive price for you, the consumer, purchasing the finished product, is completely different to what is a competitive price for Apple purchasing millions of component parts. For a supplier the administrative costs of processing a single order would easily outweigh the estimated prices of some of those parts, but when Apple places an order for a few hundred thousand pieces or so, the supplier doesn’t need to pay Alice in the sales department any more money for hammering out a few more zeroes on her keyboard. Apple can keep their BOM as low as 406 because of the economies of scale which they can create in their supply chain. If you’re so good then start typing your e-mails and getting some prices for all of those parts.

Also, do you genuinely believe that everything between those two numbers is pure net profit? If you need me to explain that one to you then I’m wasting my breath... I’ll have to assume that you have at least some understanding of how a business of that size operates.

If you’ve got a few better ideas for how Apple should run their business then maybe you should move into consultancy?

This isn’t an argument about Apple or Android.

  • Anonymous

Anonymous, 26 Nov 2020The real price is never just the cost of materials and it w... moreYes It's true this article is for click bait.

  • Anonymous

Olym1mk2, 26 Nov 2020Phones should be sold for the real price.! End of story. The real price is never just the cost of materials and it would be very naive to think so. On top of material cost, there is actual manufacturing cost, logistical costs, costs of creating and maintaining the software, design costs, retail costs such as staff, buildings, insurance, marketing, and many other hidden overheads plus as a business you also need to make a profit so shareholders who invested and continue to invest stay happy.

  • Anonymous

Anonymous, 26 Nov 2020innovation? mostly uncooked features from other phones manu... moreEvery useful feature that iOS lacks and is already mastered by Android magically becomes useful when iOS gets it. Uptil then it's called a gimmick.
Shameless iBoyzz have been repeating same talking points since a decade.
But that is to be expected from people with single digit intelligence Quotient

domraym, 26 Nov 2020Nope. Only xiaomi entry and midrangers available here, Note... moreWhich country is that?
In my country, Every company with decent enough marketshare has good customer support and after sales service.
Heck once it is out of warranty, you can get the job done via third party repair guys at a lot cheaper price.

  • Anonymous

Anonymous, 26 Nov 2020innovation? mostly uncooked features from other phones manu... moreThe moment they'll arrive on your iPhone, they'll no longer be gimmicks according to brand boys like you.

  • Anonymous

wongwatt, 26 Nov 2020Companies exist to make money - any that don't fail. ... moreExactly

  • Anonymous

Anonymous, 26 Nov 2020Can you do it cheaper ? Then buy the parts and builf your o... moreMy exact sentiments.

wongwatt, 26 Nov 2020Companies exist to make money - any that don't fail. ... moreKind of true. And imagine if the people stood together for real. Then these companies would give us things we want, for the right price.

Because the companies wouldn't exist, if we didn't buy. Sadly too many people just turn off the br4in and buys the brand. No matter what.

Phones should be sold for the real price.! End of story.