Apple does not publish its profit margins or production expenses on a per-device basis, despite publishing its gross margin for all of its goods. However, Counterpoint Research released an article showing much it costs Apple to make the iPhone 14 Pro Max.
How much it costs Apple to make iPhone 14 Pro Max
According to the statistics, the “blended bill of materials” cost for this year’s flagship with 128GB of storage comes in at $464, slightly higher than that of the iPhone 13 Pro Max from the previous year.
Counterpoint Research statistics obtained by 9to5Mac also revealed that the iPhone 14 Pro Max costs Apple about 3.4% more to produce than the iPhone 13 Pro Max. The new 48MP rear camera and the new always-on display are primarily to blame for this rise.
This year, prices for several components have reduced, with cellular components experiencing one of the most notable price decreases. According to the research, the iPhone 14 Pro Max’s blended cellular group cost share decreased to 13% compared to its predecessor due to a decrease in component pricing as 5G cellular technology gained popularity.
iPhone Pro Max component prices
- The A16 Bionic chip costs Apple around $11 more per unit than the A15 Bionic chip.
- The overall “processing” category, which includes the A16 Bionic chip, now accounts for 20% of the total materials cost.
- Apple’s self-designed components have a larger share in the overall BoM cost of the iPhone 14 Pro Max than in that of the iPhone 13 Pro Max. Apple’s self-designed components account for 22% of the overall BoM cost of the iPhone 14 Pro Max.
- Producing a 128GB iPhone 14 Pro Max mmWave smartphone costs Apple up to $474.
- Producing a sub-6GHz 128GB iPhone 14 Pro Max comes to $454.
The bigger picture
Apple has excellent relationships with its suppliers and frequently decides on component costs well in advance. Additionally, these numbers account for material costs to make the iPhone 14 Pro Max, but they do not include expenses related to assembly, packaging, or distribution.
It is also particularly intriguing to see how these component costs change over time and how they affect Apple’s consumer price. For example, even though the price of components increased, the iPhone 14 Pro Max has a similar pricing to the iPhone 13 Pro Max.
The transition from the iPhone 11 to the iPhone 12 was one of the most dramatic year-over-year price hikes, according to Counterpoint. The main reason for this was the 5G modems with a staggering 26% increase in component costs for that shift.