The cost of building Apple’s iPhone 14 Pro Max has been analyzed by research firm Counterpoint Research, and the results are interesting. The cost of making the iPhone 14 Pro Max rose by 3.4% compared to the cost of producing the iPhone 13 Pro Max. This is because of the introduction of an Always-On display and a new 48 MP Wide Camera lens. It is worth noting that Apple has priced the iPhone 14 Pro Max the same as the iPhone 13 Pro Max, which implies that the tech company is taking a cut in gross profit over its previous years.
A reduction in the price of cellular components used on the iPhone 14 Pro Max has resulted in an overall drop in the cost to produce the phone. Counterpoint’s report notes that the iPhone 14 Pro Max’s blended cellular group cost share dropped to 13% due to a fall in component prices as the popularity of 5G technology increases globally. This implies that suppliers are building more 5G compatible components, bringing down the cost for Apple in a classic supply and demand scenario.
The use of the A16 Bionic chip in the iPhone 14 Pro series also costs Apple $11 more per unit than the previous generation A15 Bionic SoC. Additionally, the components designed by Apple for the iPhone 14 Pro Max make up 22% of the bill of materials cost, a higher percentage than seen in the iPhone 13 Pro Max.
Looking ahead to the iPhone 15 line, rumors suggest we could see higher component costs for the non-Pro models due to the addition of a 48MP Wide camera. The pricier iPhone 15 models are expected to have a range of new features, including support for Wi-Fi 6E and the replacement of physical buttons with solid-state buttons. Lastly, the iPhone 15 is also expected to have USB Type-C for the first time ever, which is definitely going to raise production prices for the device.
This means that after a few years of keeping iPhone pricing static, a price hike for the entire iPhone 15 line could be on the horizon this coming September. It’s something to keep in mind for those who are looking to purchase a smartphone from the iPhone 15 lineup.
RELATED:
- Apple Implements Encryption on USB-C Port to “Control Accessory Quality”
- New Apple iMac Launch Might Be Delayed Until Later This Year, May Feature M3 Chip
- Best Solar Power Banks 2023
