Manufacturing costs for iPhone 14 Pro Max increased, and Apple takes lower profit cut

Does this mean that future customers who will purchase an iPhone 14 Pro Max will have to pay more?

Research company Counterpoint Research has conducted an analysis of the costs associated with producing Apple’s iPhone 14 Pro Max, and the findings are compelling. Compared to the cost of producing the iPhone 13 Pro Max, the price of the iPhone 14 Pro Max increased by 3.4%.

This is a result of the addition of a new 48 MP wide camera lens and an Always-On display. It’s important to note that Apple’s decision to price the iPhone 14 Pro Max at the same level as the iPhone 13 Pro Max suggests that the tech giant is reducing its gross profit margin compared to prior years.

The cost to produce the iPhone 14 Pro Max has decreased overall as a result of a decrease in the cost of cellular components used in the device.

According to Counterpoint’s report, as 5G technology becomes more and more popular around the world, the blended cellular group cost share of the iPhone 14 Pro Max decreased to 13% as a result of falling component prices.

This suggests that manufacturers are producing more 5G compatible parts, which lowers the price for Apple in a standard supply and demand scenario.

In addition, the components created by Apple for the iPhone 14 Pro Max account for 22% of the bill of materials cost, a higher percentage than seen in the iPhone 13 Pro Max. 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.

According to rumors, the addition of a 48MP Wide camera to the iPhone 15 line will likely increase component costs for the non-Pro models. A number of new features, including support for Wi-Fi 6E and the removal of physical buttons in favor of solid-state ones, are anticipated for the more expensive iPhone 15 models.

Last but not least, the iPhone 15 is anticipated to include USB Type-C for the first time ever, which will undoubtedly increase the cost of manufacturing the device. This suggests that a price increase for the entire iPhone 15 line may be imminent in September after a few years of maintaining iPhone pricing at a constant level. It’s an important consideration for anyone looking to buy a smartphone from the iPhone 15 lineup.

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