iPhone 12 Pro’s raw materials cost only $406

The news: The bill of materials for iPhone 12 and iPhone 12 Pro, which tells us the raw competent cost, has been published by Formalhaut Techno Solutions (via Nikkei Asia).

• The raw parts of the iPhone 12 Pro are said to add up to $406 USD…and the cost is only a few dollars cheaper for iPhone 12 at $373 USD
• The most expensive components? Qualcomm’s X55 5G modem and Samsung’s OLED display, both around $90
• Last year’s iPhone 11 Pro Max saw a higher cost of $490.50, according to TechInsights

Our take: I always look forward to seeing how the numbers change year-over-year, but context is important here: this is how much the materials alone cost for the 2020 iPhones. Manufacturing, assembly, storage, shipping, distribution, advertising, etc. all add significant margins on top of the base cost.