Apple launched the new iPhone 14 series last year in September with major changes in terms of hardware and features. While the iPhone 14 and iPhone 14 Plus are not seeing well, the 'Pro' models are a huge hit. Despite adding multiple new hardware features, Apple did not increase the price of its iPhone 14 models. However, the iPhone 14 Pro Max is only 3.4 percent more expensive to make compared to the iPhone 13 Pro Max. Scroll down to check out more details on what it costs Apple to manufacture the iPhone 14 Pro Max.
It costs Apple 3.4 percent more to manufacture the iPhone 14 Pro Max compared to its predecessor
According to findings from Counterpoint Research, the iPhone 14 Pro Max is about 3.4 percent more expensive to make than iPhone 13 Pro Max (via 9to5mac). The increase in price is likely due to the upgraded 48MP camera setup and the new Always-On display. Despite an increase in material cost, some component prices have gone down. The report suggests that “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."
However, other components have seen an increase in cost. For instance, the A16 Bionic chip is $11 more expensive to make than the last generation's A15 Bionic chip. Additionally, the "processing category" accounts for 20 percent of the total material cost. As for the total cost versus the selling price, manufacturing the base model 128GB iPhone 14 Pro Max with mmWave capability costs Apple $474. Additionally, the sub-6GHz version costs $454. The material cost is less than half of what the company sells the final product for.
Take note that the aforementioned digit does not reflect the cost of packaging, assembly, marketing, or distribution. Moreover, since the company spends millions on research, the per-unit cost of manufacturing the iPhone 14 Pro Max is higher than what is listed. It is also worth noting that Apple has a very unique relationship with suppliers where it finalizes the cost of materials beforehand.
The idea is evident as it costs Apple almost the same amount to manufacture the iPhone 14 Pro Max and iPhone 13 Pro Max despite the increase in material cost. The biggest jump in material cost was when Apple launched the iPhone 12, costing Apple 26 percent more compared to the iPhone 11.
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The post This is How Much It Costs Apple to Manufacture The iPhone 14 Pro Max by Ali Salman appeared first on Wccftech.
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