What is the cost of making iPhone 14 Pro Max for Apple?

What is the cost of making iPhone 14 Pro Max for Apple?

According to Techspot, currently the price of iPhone 14 Pro Max starts from 1099 dollars, but for sure the cost of making this phone for Apple is much lower than this. According to Latest analysis According to Counterpoint’s bill of materials (BoM), the 128GB mmWave version of the iPhone 14 Pro Max costs Apple just $474 to build, while the sub-6GHz model costs $454. Assuming a 44% mmWave mix, the combined BoM ends up being around $464, which represents roughly a 3.7% increase over the iPhone 13 Pro Max.

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The display, processor and camera system had the highest price increase

However, it should be noted that Apple did not increase the suggested retail price of its largest phone during the year. The Counterpoint Group has said that the phone’s display, processor and camera system all contribute more to the bill of materials (BoM) than last year.

The screen in the current generation Pro Max has a higher maximum brightness in HDR and outdoor modes. The latest models also have an always-on display that displays the clock, lock screen widgets, wallpaper, and more, all of which add to the overall cost of the display.

The cost of making iPhone 14

What is the role of A16 Bionic in the price increase?

But we come to the most special part of the iPhone 14 Pro Max, the A16 Bionic chip, which uses a more advanced 4nm manufacturing process, which Counterpoint estimates has led to an $11 increase in cost per unit compared to the A15 Bionic. Likewise, Sony’s new 48-megapixel camera system has a sensor area that’s 65 percent larger than its predecessor, as well as an improved sensor shift stabilization system. In total, the new camera components add about $6.30 to the overall cost of the iPhone 14 Pro Max.

Despite all these price hikes, Apple was still able to offset some of the higher component costs by saving in other areas. For example, as 5G technology becomes more widespread, the price of specific cellular equipment has decreased year over year.

At a glance, Counterpoint Group’s estimate of manufacturing cost, based on various parts, shows the production price of the iPhone 14 Pro Max to be about 42% of the total retail price of the 128GB iPhone 14 Pro Max. At first glance, this may seem like a great deal for Apple, but there are several other costs, including shipping, marketing, and research and development, that ultimately affect Apple’s net profit from iPhone sales.

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