The cost to make high-end expensive products are obviously lower than the price consumers have to pay.
Nonetheless, you’ll be surprised to know that certain items are way cheaper than their selling price, and it’s no different for the newly-released Apple iPhone 12.
It was recently reported that the iPhone 12, which can cost up to RM6699, doesn’t take even half of its price to make. As per Asia Nikkei, the high-end iPhone 12 Pro only takes Apple $406 (RM1652) to make for every unit, which is around the average price for middle-end phones on the market.
Despite the expensive price tag, it’s no doubt that one of the main reasons people buy the iPhone is for their high-grade camera quality. However, reports have shown that Sony’s CMOS image sensors used in iPhone 12 Pro’s camera lenses are priced at around $5.40 (RM21.97) to $7.40 (RM30.11) each, which is lower than expected.
Even though Apple has a really high profit margin when it comes to their products, there are many things to consider. Manufacturing costs is just one part of the equation when you add-on the price Apple has to consider for their products R&D (Research & Development), marketing, packaging, etc.
To make their products worth every penny, Apple spends a lot on R&D to make it all work great, posing the greater cost. According to Statista, the tech giant spent a record $18.75bil (RM76.32bil) on R&D in its 2020 fiscal year, which is $2.5bil (RM10.18bil) more than what they spent in 2019.
If it ever crossed your mind that Apple is cheating you out with their expensive price tags, keep in mind that they spend a lot themselves to make high-quality and top-notch products
Source: Asia Nikkei.