Apple had just recently announced the iPhone 14 series. And now, a new report has revealed some interesting details regarding its production, which is apparently 20 percent more expensive than its predecessor.
The news arrives from a Nikkei Asia report that claims that the new iPhone 14 models cost 20 percent higher to make than the last gen iPhone 13 lineup. Furthermore, this report also offered detailed breakdown regarding the production costs of individual models as well. For example, the top end iPhone 14 Pro Max costs around 501 US Dollars in terms of production. This is higher than the 461 US Dollar production price tag of the iPhone 13 Pro Max.
Reportedly, the primary reason for this price hike is the new A16 Bionic chipset, which alone costs 110 US Dollars. Nikkei stated that the production prices for the Pro Max iPhone models typically sat between 400 to 450 US Dollars since the introduction of this model back in 2018. In other words, the Cupertino based giant is seeing higher production expense despite not raising the prices over the previous generation. This basically means that it is willing to take a hit in profits.
As per the report, the new A16 Bionic chipset costs 2.4 times more than the previous year’s A15 chip. Furthermore, the inclusion of the new Sony CMOS sensors also further hike the prices. These new sensors are around 30 percent larger in size than last year’s sensors, and are also around 50 percent more expensive as well, with a production bill of 15 US Dollars. Interestingly, a third of the Apple iPhone 14 lineup is sourced from US based companies, with the components also seeing an overall hike of around 10 percent as well.
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