Apple spent more money to make the iPhone 12 compared to iPhone 11: Report

Apple reportedly spent more money in creating the iPhone 12 when compared to the iPhone 11. As per a report by Counterpoint Research, making a iPhone 12 (128GB) millimeter-wave model costs Apple up to $431, which is 26% higher compared to the iPhone 11.
“Despite over $27 cost savings due to the simplified RF design, the BoM cost of the sub-6GHz-only model for overseas markets still increased by 18%,” as per the report by Counterpoint Research.
Explaining the increased component prices, the report said, in the iPhone 12, Apple’s self-designed components including the A14 bionic, PMIC, Audio and UWB chip make up over 16.7% of the overall BoM cost. The shift from LCD to OLED in the iPhone 12 is a big jump, resulting in an over $23 cost increase. Cost increases are also driven by 5G-related components, with components like 5G modem, transceiver and RF front-end system collectively contributing a $34 increase.
Besides the SDX55M 5G baseband, Apple also relied on Qualcomm for transceivers and RF discrete components for both sub-6GHz and mmWave versions. “For the iPhone 12, Qualcomm will be the second-largest electronic component supplier behind Samsung Electronics,” it added.