According to the Couterpoint teams, the components and materials used in the construction of an iPhone 12 increase its production cost by nearly a fifth compared to an iPhone 11. The observation is even clearer when we compare an iPhone 12 128 GB which costs Apple $ 431 to build. This is 26% more than for an iPhone 11 of the same capacities.
The main reasons for this price increase can largely be explained by the arrival of 5G on new Apple models, but also by the generalization of OLED screens across the entire iPhone 12 range. iPhone 11 was not entitled to such image quality when it was released, the OLED being reserved for the Pro and Pro Max models. This screen change would cost Apple an additional $ 23 per device.
Today, the iPhone 12 has a starting price of $ 909, $ 100 more than the 64GB iPhone 11 when it was released. A price increase which therefore follows the increase in model manufacturing costs. Note that the iPhone 12 Pro and 12 Pro Max are today at the same price as the Pro and Pro Max versions of the iPhone 11 last year.
The integration of OLED is no longer to compensate, the price of the new models could remain the same this year. Counterpoint even reports that with very large storage capacities, the iPhone 12 Pro and 12 Pro Max are cheaper than an iPhone 11 Pro or Pro Max with the same capacities last year. A saving of around fifty dollars which is also visible in France.
An even cheaper 2021 iPhone?
If Apple tries to produce ever more efficient iPhones, in recent years the trend has also been to limit costs for the Apple brand. According to analyst Ming-Chi Kuo, the next iPhone should see them be drastically reduced. Apple hopes to be able to count on a whole new production technique for its processor which should reduce the manufacturing costs of the latter by 30 to 40%.
An economy that will be visible on the purchase? This is not certain, however. Apple could indeed take advantage of this economy to integrate new more expensive technologies, without increasing the selling price of its phone and remaining below the symbolic bar of $ 1,000.