Price of parts for iPhone 12 Pro and geography of their manufacturers

Price of parts for iPhone 12 Pro and geography of their manufacturers
For the production of Apple's iPhone 12 smartphones, the cooperation of the American company with its main competitor, the South Korean concern Samsung, is becoming increasingly important. This conclusion was reached by Nikkei journalists, who analyzed together with the Japanese company Fomalhaut Techno Solutions prices for parts and the geography of suppliers of components for Apple smartphones in 2020.

When disassembling and evaluating the cost of iPhone 12 Pro parts, it was found that the components of the device produced by companies from South Korea accounted for 26.8% (in price terms) of the total amount spent on parts for the smartphone. This figure exceeded the price of parts produced in the United States and amounted to 21.9%.

The increase in the share of South Korean companies is primarily due to Apple's transition from LCD screens to OLED displays from Samsung Display and LG Display. So the screen from Samsung costs $ 70 for the iPhone 12 Pro. However, the most expensive part for the iPhone 12 Pro is the Qualcomm X55 5g modem, estimated at $ 90. The company's proprietary A14 Bionic processor cost about $ 40, $ 12.8 was allocated for RAM, and $ 19.2 for flash memory. Sensors from the Japanese company Sony are priced from 7.4 to 7.9 dollars per unit.

Apple's total cost of parts for the iPhone 12 Pro was about $ 406, which is $ 33 more than the cost of components for the basic iPhone 12 smartphone. Meanwhile, in retail chains, the difference in the price of models is about $ 200.

However, to estimate the total cost of smartphone production, you should take into account considerable funds for research, marketing and design work, delivery of parts and finished products, software development and debugging, advertising, and many other items that form the cost price.

Experts also noted that in the production of the iPhone 12 Pro smartphone, parts from European companies were actively used, the share of which is exactly equal to the share of American suppliers and is 21.9%.

The Japanese, in addition to sensors for cameras, supply battery cells for the iPhone 12 series smartphones, created by Amperex Technology, a subsidiary of the Japanese TDK, located in Hong Kong. In total, the share of Japan in the iPhone 12 Pro accounts for 12% of the cost of components.

Taiwan and mainland China account for insignificant shares of 11.2% and 4.6%, which is the result of constant disputes between countries over the rights to use technology. Meanwhile, the Nikkei notes that the iPhone 12 is being assembled at factories located in China and to reduce Apple's dependence on a competing US country, the company needs to look for alternative production sites.
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