Factory Production Real Costs of Apple iPhone and Samsung Android Smartphone | The cost of making iPhone 12 Pro is 30 thousand rupees, but the company sells it for 74 thousand; Up to 59% more than the cost of production

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  • Factory Production Real Costs Of Apple IPhone And Samsung Android Smartphone

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Just 14 years ago today, Apple launched its first iPhone. Since then, the craze of the iPhone has not diminished. The only difference is that at that time people had to buy iPhone by standing in long lines outside the stores, now this work is done online. In the last 14 years, the prices of iPhone have reached above lakh rupees, but there is no decrease in its demand even today.

By the way, have you ever thought that the cost of production of the iPhone, which has now reached above lakh rupees, would have been? How much profit will the company make on the last one iPhone handset? Similarly, how much profit do premium Android smartphone makers like Samsung, Google also make on their handsets.

Let us know today about the cost of their production and the benefits to the company …

Apple’s profit on the iPhone 12

model

production cost

retail price

Profit (%)

iPhone 12 Pro (128GB)

$406

$999

59.36%

iPhone 12 (64GB)

$373

$829

55.01%

iPhone 11 Pro Max (512GB)

$490.50

$1,449

66.15%

The production cost and retail price of all models are for the US market.

Source: Techwalls

Even during the Corona epidemic, the demand for iPhone has been fierce. In the first quarter of this year, the global sales of smartphones have crossed $100 billion (about Rs 7.3 lakh crore). Apple iPhone 12 Pro Max has captured the highest revenue during this period. At the same time, the number of iPhone 12, iPhone 12 Pro and iPhone 11 remained. According to a Techwallas report, the production cost of the iPhone 12 Pro (128GB) in the US is $406 (approximately Rs. That is, on one of its units, the company makes a profit of 59.36% or $ 593 (about Rs 44,000).

Equal expenditure on both hardware and software of the phone
Tech expert Praval Sharma told that the price of the phone is not determined on one unit, but by the number of million orders being received. The price of the phone is in the 40-60 ratio in hardware and software. It can be assumed that the company has to spend around 1500 to 2000 rupees in hardware for manufacturing one of the cheapest 4G Android smartphone. In this too, display size, camera megapixels play an important role. At the same time, about 2000 rupees have to be spent for the software. The cost of software that does not get updates gets reduced.

The company’s profit on the second model of the iPhone

model

production cost

retail price

Profit (%)

iPhone XS Max (256GB)

$443

$1,249

64.53%

iPhone X (64GB)

$389.50

$999

61.01%

iPhone 8 Plus (64GB)

$295.44

$799

63.02%

iPhone 8 (64GB)

$254.87

$699

63.54%

iPhone 7 Plus (32GB)

$277.66

$769

63.9%

iPhone 7 (32GB)

$224.80

$649

65.4%

iPhone 6S Plus (16GB)

$236

$749

68.5%

iPhone 6S Plus (64GB)

$253

$849

70.2%

iPhone 6S (16GB)

$211.50

$649

67.4%

iPhone 6 Plus (16GB)

$215.60

$749

71.2%

iPhone 6 Plus (128GB)

$263

$949

72.4%

iPhone 6 (16GB)

$200.10

$649

69.2%

iPhone 6 (128GB)

$247

$849

70.9%

iPhone 5C (16GB)

$183

$549

67%

iPhone 5S (16GB)

$199

$649

69%

iPhone 5S (64GB)

$218

$849

74%

iPhone 5 (16GB)

$207

$649

68%

iPhone 4 (16GB)

$188

$599

69%

iPhone 4S (16GB)

$188

$599

69%

The production cost and retail price of all models are for the US market.

Source: Techwalls

Samsung and Google are also not behind in making profit

It is not that only Apple is making up to 72% profit on its iPhone. Rather, premium Android smartphone maker Samsung and Google also make similar profits on their handsets. The Samsung Galaxy S20 Ultra’s 12GB RAM + 256GB storage variant costs $1350 (approximately Rs 100,200) in the US market, while its production cost is $528 (about Rs 39,000). That is, the company makes a profit of $ 822 (about Rs 61,200) on a unit.

Similarly, Google sells its Pixel XL (32GB) smartphone in the US market for $769 (about Rs 57,000), while its production cost is $285 (about Rs 21,100). That is, the company makes a profit of 62.84% or $ 484 (about 35,900) on a handset.

Samsung smartphone cost and profit

model

production cost

retail price

Profit (%)

Galaxy Note 8

$369

$950

61.2%

Galaxy S3 (16GB)

$213

$549

61%

Galaxy S5 (32GB)

$256

$569

55%

Galaxy S6 (32GB)

$275.50

$699.99

60.6%

Galaxy S6 Edge (64GB)

$290.45

$799.99

63.7%

Galaxy S7 (32GB)

$255

$599

57.4%

Galaxy S8 (64GB)

$307.50

$720

57.3%

Galaxy S8 Plus

$343

$850

59.6%

Galaxy S9 Plus (64GB)

$379

$839

54.8%

Galaxy S10 Plus (128GB)

$420

$999

57.9%

Galaxy S20 Ultra (256GB)

$528.50

$1,350

60.9%

The production cost and retail price of all models are for the US market.

Source: Techwalls

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