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iPhone 13 Pro Costs Around $20 More to Build Compared to the iPhone 12 Pro, Despite Being the Same Price for the Customer

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The iPhone 13 Pro costs Apple around $20 more to build compared to last year's iPhone 12 Pro, but despite the lower margin of revenue for the company, the iPhone 13 Pro still starts at the same $999 price point as last year's entry-level Pro iPhone.

iphone-13-pro-and-pro-max-cameras.jpg

TechInsights did a costs analysis breakdown of the new iPhone 13 Pro, finding that due to higher component costs related to the improved camera, A15 Bionic chip, ProMotion displays, and presumably the large battery, the newest iPhone costs $570 to build, while the iPhone 12 Pro cost merely $548. Compared to the Samsung Galaxy S21+, both iPhones are however significantly more expensive to build.

iphone-13-pro-costs-breakdown.jpeg

The increase in build costs from the iPhone 12 Pro to the iPhone 13 Pro is notable but not as pronounced as last year's increase from the iPhone 11. The iPhone 12 introduced 5G support, a new 5nm chip, and the return of flat edges. Those changes resulted in the iPhone 12 being 21% more expensive for Apple to build than the iPhone 11.

In the run-up to the launch of the iPhone 13 and iPhone 13 Pro last month, a report suggested that due to increased costs for chip production, Apple would increase the price of the iPhone 13 as a means of compensating. That did not occur, and Apple instead kept the same price points for the iPhone 13, on top of introducing more aggressive carrier subsidies. Another report suggested that Apple was looking at new ways to assemble the cameras in an iPhone to save costs.

Article Link: iPhone 13 Pro Costs Around $20 More to Build Compared to the iPhone 12 Pro, Despite Being the Same Price for the Customer
 
Article Link
https://www.macrumors.com/2021/10/04/iphone-13-pro-costs-breakdown-iphone-12-pro/
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But everyone on the internet tells me iPhones are overpriced....

Look at samsung s21+ its costs $508 to build but retailed for $999 when it came out

The iPhone 13 Pro costs $570 to build but retailed at $999

who's overpriced samsung or apple??

The world makes you believe its Apple.
 
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Reactions: TropN, ealeks, Gasu E. and 28 others
Clearly the end-user price should go up by $20, since so many here have relentlessly insisted that Apple leaving out the charging brick means the end-user price has to come down by the price of the charging brick or else they’re getting ripped off. It works both ways, right?
 
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Kung gu said:
But everyone on the internet tells me iPhones are overpriced....

Look at samsung s21+ its costs $508 to build but retailed for $999 when it came out

The iPhone 13 Pro costs $570 to build but retailed at $999

who's overpriced samsung or apple??

The world makes you believe its Apple.
Click to expand...
The fact that they still have kept their original prices (the price of the X and Xs Max) is fascinating.

Android competitors keep increasing their phones' price (which then decline drastically in a few months)
 
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Kung gu said:
But everyone on the internet tells me iPhones are overpriced....

Look at samsung s21+ its costs $508 to build but retailed for $999 when it came out

The iPhone 13 Pro costs $570 to build but retailed at $999

who's overpriced samsung or apple??

The world makes you believe its Apple.
Click to expand...
You appear to have been a little shortsighted. Maybe?

So since I've been in business I know that upfront costs or even hardware costs aren't everything and there is much more too it. Apple will have a budget for the iPhone. They will have a projected sales number.
Let's say the budget spend for the life of the iPhone is $100.
Hardware costs for model 1 are $60. Maybe Apple buy their components more cheaply?
Hardware costs for model 2 are $40.
Development and advertising costs for model 1 are $40.
Development and advertising costs for model 2 are $60.

Why should they need to raise the price of the end product?


So much missing from your soundbite..........
 
I’m surprised it was only $20 more when it seems like the cost of everything is going up.

It is pretty interesting to see how much markup is on the S21+
 
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_Spinn_ said:
I’m surprised it was only $20 more when it seems like the cost of everything is going up.

It is pretty interesting to see how much markup is on the S21+
Click to expand...
Don’t think they’re worried about the $20, they jacked up the price of the mini by a $150 here in Aus, that more than covers the $20 lol.
 
Kung gu said:
But everyone on the internet tells me iPhones are overpriced....

Look at samsung s21+ its costs $508 to build but retailed for $999 when it came out

The iPhone 13 Pro costs $570 to build but retailed at $999

who's overpriced samsung or apple??

The world makes you believe its Apple.
Click to expand...
until not long ago, Apple was overpriced...probably nowadays people dont see the value of apple todays device/price ratio
I mean look at the M1 Macbook air, another good example for performance/battery/price its outstanding
In the last 1 year, the OTHERS became overpriced...lets not forget Samsung charged 100$ when they went with 5G
 
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Look, I know these things take money to build, develop and market.

But the prices of the Pro line are the maximum I'm willing to pay for a phone. If they enter the $1500 territory for a base Pro model, I think I'm out.
 
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Kung gu said:
But everyone on the internet tells me iPhones are overpriced....

Look at samsung s21+ its costs $508 to build but retailed for $999 when it came out

The iPhone 13 Pro costs $570 to build but retailed at $999

who's overpriced samsung or apple??

The world makes you believe its Apple.
Click to expand...

who's overpriced samsung or apple??

The correct answer is: c) both
 
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Reactions: Hammerd, BluefinTuna, Apple-Guy and 27 others
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