We all have heard jokes like “Selling kidneys to buy the iPhone”. Apple iPhones are not only the most wanted phones but also really expensive, yet everyone wants to own it.
With their present products ranging from Rs. 69,999 to as high as Rs. 1,49,999 in India, Apple still manages to make a considerable amount of sales even with such high prices.
Even though there are a lot of other phones available in the market with much better features and lower prices, yet people are still mad about Apple products only.
So why are Apple iPhone prices so high? Is it costlier to make an iPhone as compared to an Android? Apparently, NO!
According to the latest reports, the bill of material (BoM) for an iPhone 12 only costs roughly Rs. 27,550 while for 12 Pro it only costs around Rs. 30,000! Yet Apple makes you pay an incredibly humongous amount of money to buy these 30k phones!
Fomalhaut Techno Solutions, a Tokyo-based research company, partnered with Nikkei, conducted a teardown report on the BoM of an iPhone.
According to the reports, the BoM of the iPhone 12 Pro is approximately Rs. 30,000. This is around Rs. 43,800 less than the retail price at which Apple is selling iPhone Pro which has its starting price of Rs. 73,800.
Similarly, the BoM calculated for iPhone 12 is Rs. 27,500. This is Rs. 31,500 less than the starting price of iPhone 12 which is around Rs. 59,000.
As per the Fomalhaut-Nikkei report, the costliest component used in the iPhone is the Qualcomm X50 5G modem for providing 5G connectivity, which costs around Rs. 6,600 ($90). This is followed by the OLED displays used in iPhones which are manufactured by Samsung costing Rs. 5,100 ($70).
Other components like the famous Apple A14 Bionic chips present specifically in the iPhone 12 family, costs roughly Rs 2,900 ($40).
The report also mentions that Apple heavily sources its material from many countries. According to the report’s findings, maximum components for the iPhone 12 phones are sourced from Asian countries like South Korea (26.8%), Japan (13.6%), China (4.6%).
Apple also sources the iPhone batteries from a Hong Kong-based company, Amperex Technology, a subsidiary of Japan’s TDK.
Comparing all the facts as well as the latest report we can all agree that the retail price of these premium range Apple phones are much higher than the BoM of these iPhones which is less than half its price. The increase in the price is only due to the Apple brand name!
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This post is tagged under: iPhone, Apple, Apple inc, Profit, expensive, expensive phone, ios, android phones, India, reports, Fomalhaut Techno Solutions, Nikkei, Bill of Manufacturing, retail price, fans, Qualcomm X50 5G modem, 5G connectivity, Samsung, OLED display, A14 Bionic chips, iPhone 12, iPhone 12 pro, South Korea, Japan, Hong Kong, China, brand, premium range phones