The new iPhone 13 Pro costs around $20 more to manufacture than its predecessor.
That’s according to TechInsights, who performed a cost analysis breakdown and confirmed that, although Apple has not raised the price of this year’s flagship smartphone, the company is indeed taking a bigger hit when it comes to manufacturing.
Indeed, the new iPhone 13 Pro still retails for $999 in the United States.
Higher component costs, such as an improved camera, the new A15 Bionic chip, ProMotion displays, and a larger battery mean that the iPhone costs an estimated $570 to make. The iPhone 12 Pro, on the other hand, reportedly cost the company $548 to produce.
It’s interesting to note that this year’s price increase might mean Apple’s taking a hit of around $20, but it’s not as dramatic an increase as last year. The same report found that the difference between producing the iPhone 11 and iPhone 12 was around 21%, though the iPhone 12 was slightly more expensive to consumers to accommodate this.
The iPhone 12 offered a significant leap forward over the iPhone 11, introducing an all-new design as well as the introduction of 5G on the iPhone for the first time. This year, Apple’s made fewer drastic changes, though the increase in component parts will still impact Apple’s profit margins.
It’s important to stress that these figures are estimations only, and Apple’s actual costs could vary quite considerably when you consider its market power and economies of scale. Apple is increasingly sourcing its own components and moving away from its reliance on third parties, as it’s also doing with its Mac range, transitioning to its own custom silicon chips, like the M1 chip.
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