Apple introduced the iPhone 15 family at an event in September 2023. The most notable model in the series was the iPhone 15 Pro Max, with its price and features. The phone was also talked about because it was $100 more expensive than the iPhone 14 Pro Max, which was released the previous year at $1,099. So why did Apple make this decision? Allegations that the company’s production costs had increased emerged. A recent report revealed the cost difference between the two phones. Here are the details…
Apple’s iPhone 15 Pro Max Price Increase Due to New Features Cost or Profit Margin?
Apple’s cost to produce the 8GB + 256GB iPhone 15 Pro Max is 8% higher than the 6GB + 256GB iPhone 14 Pro Max, according to research by Counterpoint. This means that Apple could either absorb the cost increase itself or increase the price by a smaller amount to minimize the impact on consumers. However, the company did neither. As you know, the iPhone 15 Pro Max is a powerhouse when it comes to performance.
The biggest reason for this is Apple’s new generation mobile processor, the A17 Pro, which is manufactured using TSMC’s 3nm process technology. The company increased CPU and GPU performance by 20% thanks to this processor. In addition, ray tracing and DLSS-like technologies also made their way into our lives with this A17 Pro. Unfortunately, the price of this performance was reflected in the iPhone 15 Pro Max’s cost as a $30 increase.
Apple’s first 5x telephoto camera was another factor that increased the cost of the iPhone 15 Pro Max. The camera has a focal length of 120mm and uses a quadruple reflection prism to reflect light. This allows users to take clearer close-ups of more distant objects. Apple also used a 3D sensor-shift OIS technology that can make 10,000 micro-adjustments per second. These features make the iPhone 15 Pro Max’s camera system 34% more expensive than the iPhone 14 Pro Max’s.
As you know, Apple used titanium alloy for the frame of the iPhone 15 Pro Max. This decision reduced the weight of the device by about 20 grams, making it the lightest Pro Max model ever produced. However, everything has a price, and the cost of the new case increased by 18% compared to the iPhone 14 Pro Max.
Moreover, not all developments were negative. Apple’s RAM costs fell by 35%, and its display costs fell by 4%. Based on all of this, we can assume that the main reason for the company’s price increase is not cost, but profit.
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