HomeNewsApple NewsHow much is the iPhone 12 actually worth???

How much is the iPhone 12 actually worth???

Apple launched the iPhone 12 on 13th October 2020 and it has all the features like 5G connectivity, a flat-edge design and a “mini” model. But the price listed for the smartphone is really really high. P.S. the no charger thing is making people insane.

So, why does Apple charges so much for it? Is it actually worth the price you pay?

Lets check it out together.

How much it cost to build an iPhone?

Fomalhaut Techno Solutions, in collaboration with Nikkei Asia released their report on the bill of materials for the iPhone 12 and iPhone 12 Pro, which reveals the true cost which is spent in the making of these two iPhones. According to that report, the parts used in making iPhone 12 costs $373 (roughly Rs 27,550), while the parts used in iPhone 12 Pro costs $406 (roughly Rs 30,000).

Some of the parts used in building the iPhones are Samsung built OLED display screen which costs $70 (approx.), the Qualcomm X55 5G modem (iPhone 12 series) costs $90. Other than these, the RAM and flash memory costs around $12.8 and $19.2 per unit respectively. Also, the Sony camera sensors which are used in the new iPhone 12 phones costs around $7.4 to $7.9 per unit.

Now, we know that the actual price for which the Apple is selling the iPhone 12 and iPhone 12 pro starts from $799 and $999 in the US; whereas the parts used in the iphones costs $373 and $406. And by comparing the actual cost spent and the price for which it is sold, we can see that how insanely high the MRP is, its actually more than double.

Although we all know that there are other aspects too such as taxes, marketing, research and development, customer support, etc. where Apple has to spend some money before putting an MRP on the complete product.

The report also mentioned that 26 per cent of the parts for iPhone 12 come from South Korea, 21.9 per cent from the United States and 13.6 per cent from Japan. Whereas the iPhones are assembled in China.

According to the CEO of Apple – Tim Cook,  the actual reason to assemble the parts in China is the skills. China has the experts in that field.

Other than that, China has seven of the world’s largest 10 ports, which makes it really easy to ship the final product anywhere around the world.

Hope you liked the article. Thank You So Much for reading.

Will be back with another article.


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Kavita is a tech enthusiast. She is the co-founder and Content Strategist of Technologydunia.in . She is also an Instagram Food Blogger. She is a foodie by day and writer by night. You can follow her food blog on Instagram @thatfoodiefreak .


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