Why does an article sourced from a third party seem to imply that Apple is preparing you for a price increase? You will believe what you want regarding Apple's pricing and profit margins.
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Report: iPhone 12 is 21% More Expensive to Make Than iPhone 11
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Bottom line iphone 11 to bottom line iphone 12, the price stayed the same.
However, are your numbers taking into account 13 years of inflation?
Everyone has to deal with inflation, Apple isn't immune.
I was suspired when Apple announced mmWave in iPhone 12 and OLED. Both of those were expensive. Knowing Qualcomm would increase the cost. I wrote about the cost concern in 2019 and recently 2020 [1]
But then Apple had all the OLED supply agreement from Samsung to Fill, left over from last few years. And the pandemic made lots of uncertainty if they will even shift through any decent unit volume. I mean most were expecting a **** storm, turns out US economy is much more resilient.
Next year is going to be even more interesting. Are we going to have Worldwide roll out of mmWave iPhone ? ( It doesn't make any sense, but apple may have mmWave antenna for other usage )
Are we moving to Qualcomm X60? Which will be the first time Apple has leading Edge node in both SoC and the Modem ( again it doesn't make sense due to capacity and cost concern )
Are we moving to LPDDR5? We seems to be the case for M1X.
Apart from the Camera lens, it would seems to be Apple has filled all the low hanging fruit with iPhone 12. The only thing left is LTPO 120Hz OLED. And possibly a Touch ID, which would be another cost as well.
Not entirely sure what is left for iPhone to improve, other than getting rid of the notch over a long period of iteration. And nothing in the current BOM list will get any cheaper in the short term either. Everything is and will be more expensive.
[1] https://forums.macrumors.com/thread...y.2243446/page-10?post=28618654#post-28618654
But then Apple had all the OLED supply agreement from Samsung to Fill, left over from last few years. And the pandemic made lots of uncertainty if they will even shift through any decent unit volume. I mean most were expecting a **** storm, turns out US economy is much more resilient.
Next year is going to be even more interesting. Are we going to have Worldwide roll out of mmWave iPhone ? ( It doesn't make any sense, but apple may have mmWave antenna for other usage )
Are we moving to Qualcomm X60? Which will be the first time Apple has leading Edge node in both SoC and the Modem ( again it doesn't make sense due to capacity and cost concern )
Are we moving to LPDDR5? We seems to be the case for M1X.
Apart from the Camera lens, it would seems to be Apple has filled all the low hanging fruit with iPhone 12. The only thing left is LTPO 120Hz OLED. And possibly a Touch ID, which would be another cost as well.
Not entirely sure what is left for iPhone to improve, other than getting rid of the notch over a long period of iteration. And nothing in the current BOM list will get any cheaper in the short term either. Everything is and will be more expensive.
[1] https://forums.macrumors.com/thread...y.2243446/page-10?post=28618654#post-28618654
Well CounterPoint research's BOM cost has always been on the very high side. So dont take the absolute number $431 as fact. There are others which I consider to be more accurate putting iPhone 12 Pro Max at similar BOM cost.
But the point of 5G, Modem, mmWave, OLED being more expensive still stands. So from that view they are absolutely correct. And iPhone 12 might have been the best value ( or lowest margin ) flagship iPhone Apple has ever launched.
Its also one of the most returned iPhone ever for overheating issues.
In my opinion 2020 was the right year for Apple to include 5G on their new phones. Remember, many people keep their iPhones for 4 years or more and the 2020 are somehow future proof
That's precisely what they should have done !
But, if they had done that, then the carriers wouldn't be the ones driving iPhone Unit Sales this time around.
I plan on sticking with my 11 Pro Max until I, as an EE, am FULLY convinced 5G is ready for prime time.
And here I don't just mean the cellular infrastructure, but ALSO that the front-end 5G designs are much more power efficient !
The 6.1" LCD iPhone 11 is the perfect "interim" iPhone for anyone needing to upgrade right now !
It is the single best value of anything AAPL sells !
I don't how they can continue to make so many variations, I wonder how profitable it is...with people asking every variation in every size, etc....Just like I wonder of the overall profitability of BMW...1 series, 2 series, 3 series 4, 5, 6, 7, 8, X1, X2, X3, etc...How do run so many tooling changes to production and still be cost effective....just my .02
I like the square edges more....I still have my 11 Pro, but I will wait for the 13 Pro. I used to update every year, but it just makes no sense.
iPhone 12 lineup was rushed, when toggling 5G Auto on phone loses 40% its battery life in 5min is not cool. There were so many design flaws in iPhones this year. Even though 5G gave me pretty great speeds it still doesnt bring any value.
But of course you can fry an egg with your iPhone if youre hungry.
I really hopr they keep the charging port in iPhones, and remove the magnets inside (100% worthless).
But of course you can fry an egg with your iPhone if youre hungry.
I really hopr they keep the charging port in iPhones, and remove the magnets inside (100% worthless).
you’re not remembering correctly. the first iPhone sold for $499 on release day, not $160.
it’s surprising the base model iPhone only costs 40% more after 13 years despite inflation and expensive costs of technological advancements.
Because ladies and gents — it has a Qualcomm 5G modem which cost apl $6 Billion to use.
appleinsider.com
Apple payment to Qualcomm estimated at $6 billion, with $9 per iPhone sold in royalties | AppleInsider
The settlement between Apple and Qualcomm to end lawsuits over patent licensing and infringement is costing Apple nearly $9 per iPhone on top of a single $6 billion payment, according to UBS.
appleinsider.com
To quote Ralph Kramden on the $6B - "mere bag of shells".Because ladies and gents — it has a Qualcomm 5G modem which cost apl $6 Billion to use.
Apple payment to Qualcomm estimated at $6 billion, with $9 per iPhone sold in royalties | AppleInsider
The settlement between Apple and Qualcomm to end lawsuits over patent licensing and infringement is costing Apple nearly $9 per iPhone on top of a single $6 billion payment, according to UBS.
By then, it’s unusable soon 😂 iPhone can only live for about 5 years then they don’t get software updates.
I turned off 5G on my iPhone 12 Pro because I get better speeds on LTE than I do on 5G.
Fix this, T-Mobile!
Exactly!
It seems that you are confusing the words, since cost and price are not the same. You are talking about price, while iBug2 is talking about cost.
I’m surprised that Apple’s profit margin is only around 50%. That seems low especially after they account for shipping, warranty, etc. but I suppose that’s still around $400 and volumes make up for it.
Also they’re probably not discounting them for retailers, which make their profit on activations.
Also they’re probably not discounting them for retailers, which make their profit on activations.
Because it's too expensive... "more affordable" is yesterdays high end price tag. Most people wanting a small iPhone are not hardcore users hence are not willing to pay what apple asks.
What people wanted was an SE like device that's not actually wasting a lot space for bezels yet maintain a medium tier price tag.
They should have possibly made the 12 mini a 4G phone... I'm pretty sure 99% of the mini buyers don't give a flying f... about 5G.