February 14, 2023
According to Counterpoint Research, Apple’s iPhone 14 Pro Max costs approximately $467 to manufacture. The high cost of the device’s components, such as the OLED screen, 5G modem, and A16 Bionic chip, is primarily responsible for this cost.
Furthermore, the report states that the cost of producing the iPhone has risen significantly in recent years. The cost of producing the iPhone 13 Pro Max in 2021 was $406, implying that the cost of producing the iPhone 14 Pro Max has increased by approximately $61. The iPhone 14 Pro Max costs Apple approximately 3.4% more to manufacture than the iPhone 13 Pro Max.
Apple pays about $11 more per unit for the A16 Bionic chip than the A15 Bionic chip. The overall “processing” category, which includes the A16 Bionic chip, now accounts for 20% of total materials costs. While Apple’s self-designed components account for a larger portion of the overall BoM cost of the iPhone 14 Pro Max than the iPhone 13 Pro Max. Apple’s self-designed components account for 22% of the iPhone 14 Pro Max’s overall BoM cost. Furthermore, the production of a 128GB iPhone 14 Pro Max mmWave smartphone costs Apple up to $474. The cost of producing a sub-6GHz 128GB iPhone 14 Pro Max is $454.
The so-called “blended bill of materials” cost for this year’s flagship with 128GB of storage comes in at $464, a slight increase over last year’s iPhone 13 Pro Max. The new 48MP rear camera and the new always-on display are the primary reasons for this increase.
Prices for certain components have also gone down this year, with one of the most notable price drops impacting cellular components. “Compared with that of its predecessor, the iPhone 14 Pro Max’s blended cellular group cost share dropped to 13% due to a fall in component prices as 5G cellular technology rises in popularity,” the report says.
Overall, while the cost of manufacturing the iPhone 14 Pro Max is high, Apple is expected to make a significant profit from the device. The iPhone 14 Pro Max is certain to be a popular choice among consumers due to its high-quality components and advanced features.
The sources for this piece include an article in 9to5Mac.
