Report: iPhone 12 is 21% More Expensive to Make Than iPhone 11

[az431]

Counterpoint has zero knowledge of what Apple pays for components. A number drawn at random might has as good a chance at being correct as their nonsense guesstimate.

 

[rafark]

So this is the real reason why they removed the charger and EarPods.

 

[I7guy]

So this is the real reason why they removed the charger and EarPods.

Probably. The additional cost of components in the iphone 12 was balanced out by the removal of the charger, which has a huge secondary benefit to the environment. From a cost perspective Apple wanted the lowest tier iphone 11 to be the same price as the lowest tier iphone 12 and from an environmental perspective this has a ripple effect from manufacturing to packaging to transportation.

As has been said before, win/win/win; even if one is an iphone newbie and has to buy a charger. A win for the environment is a win for everybody.

 

[Apple_Robert]

Is anyone here surprised by this news? I am not. I think more and more people are going to keep their phones longer due to cost and other outside mitigating factors.

 

[Channan]

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.

I like it better also. My point was just that he/she probably only thinks one feels nicer than the other because of the shape of it, not because of the materials they’re made out of.

 

[Septembersrain]

I finally got to see a 12 Pro Max in Best Buy as my husband wanted a game. I'm not a fan. It feels and looks off to me. Though I thoroughly hated the 5 body style, so it's not a surprise. Just didn't think I'd feel that it looks cheap. Obviously this is just my opinion but all the scratches on the demo units edges were insane for the cost of this device.

 

[McScooby]

This is wet your finger and stick it in the air stuff & guess what way the wind is blowing, it'll never be right. I'd aways err on the side of caution with these statements and believe that whatever you think, apple will always be making a healthy mark-up, it's in their DNA.

 

[tennisproha]

I call BS on that estimate. Earlier iPhone estimates where at $200 to $250 so there’s no way and Apple said even that was wrong.

 

[iVeritas]

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.

oh, yes. i missed the ‘cost’ part. i apologize for that. 😅 yes, what i meant was the price, not the cost. although it is still quite remarkable that despite the almost 300% increase in manufacturing cost, the iPhone only increased in price by 40%.

 

[I7guy]

This is wet your finger and stick it in the air stuff & guess what way the wind is blowing, it'll never be right. I'd aways err on the side of caution with these statements and believe that whatever you think, apple will always be making a healthy mark-up, it's in their DNA.

Nobody said they weren't making $$$, only a wet finger in the air estimate regarding the cost...which seems that with the inclusion of the upgrades since the iphone 11, the iphone 12 would be more expensive to manufacture.

 

[webkit]

oh, yes. i missed the ‘cost’ part. i apologize for that. 😅 yes, what i meant was the price, not the cost. although it is still quite remarkable that despite the almost 300% increase in manufacturing cost, the iPhone only increased in price by 40%.

Regarding price (not cost ) of the original iPhone, the AT&T contract requirement would also need to be factored into the equation. The original iPhone required a 24 month AT&T contract at the prices of $499 (4GB) and $599 (5GB). Plus, the price dropped to $399 (5GB) just a few months later. Without the contract obligation, the prices would have been higher.