It’s kind of an annual report with every iPhone release. How much does Apple cost to make its latest high-end smartphone? Seen by the site 9 to 5 mac, HE Counterpoint Research Report dissects each year the cost of the different elements of the device to establish a price.
Forks iPhone 14 Pro Max with 128 GB of sieved storage.
3.4% more expensive to manufacture
Even if Apple never clearly communicates on its margins, we know that the iPhone is the cash cow for the brand. The only information that the company agrees to sell is the gross margin achieved on its products (37% in the first quarter of fiscal year 2023 – that is, the last quarter of 2022), recalls 9to5Mac. A fairly stable figure for several years.
In France, as in many countries around the world, the price of the iPhone 14 Pro Max has increased considerably to reach 1,479 euros. An increase in the price of iPhone 13 Pro Max which would be due in particular to the variation of the dollar against the euro, but also to the increase in the cost of the components.
Counterpoint Research’s first finding: The iPhone 14 Pro Max is 3.4% more expensive to manufacture than its predecessor. However, this is not necessarily due to an increase in the price of each item.
According to the report, technical improvements to certain components are adding to the bill. The A16 Bionic chip design costs $11 more than the previous A15 Bionic chip. This would explain why it was kept on the iPhone 14 and iPhone 14 Plus. The arrival of a new 48 Mpx photosensor in the rear and the incorporation of always-on screen technology also contribute to the increase in costs. The switch to the front camera on board the Dynamic Island
The report points out that the screen still represents 20% of the total cost and that the elements of its own design (PMIC, audio, connectivity, touch control, chips, processor, etc.) are responsible for 22% of the bill. But there are also points where the price drops for Apple. This is particularly the case for cellular components with the democratization of 5G (-13%).
Additional costs to be added to the final invoice
Putting all the information together, Counterpoint Research reaches a total of $454 (about 422 euros without taxes) for an iPhone 14 Pro Max with standard 5G and $474 (about 441 euros without taxes) for a millimeter 5G model.
However, do not think that Apple would manage to make more than 1000 euros of margin in this way on its premium device. If the manufacturing costs of the iPhone 14 Pro Max are more or less the same amount as the previous models, then you have to add the costs of assembly, packaging, shipping and distribution. Other elements must also be taken into account, such as the amounts invested in Research and Development, marketing or sales, which are reflected in the final price.
In addition, Apple also pays its constant concern for the anticipation. With the gradual end of the shortage of components, the Cupertino giant has also secured its elements at higher prices to be sure to have them in time to manufacture its iPhone 14 Pro Max.
Source: BFM TV
