iPhone 15 Pro Max costs Apple 8% more to make than iPhone 14 Pro Max
Counterpoint Research published a new report today on the “blended bill of materials,” or BoM, cost for Apple’s iPhone 15 Pro Max. This report reveals how much it costs Apple to make each iPhone unit, and according to it, this year’s high-end model costs Apple 8% more than the iPhone 14 Pro Max.
iPhone 15 Pro Max costs $502 to make
The report details that Apple spends around $502 to make the base model iPhone 15 Pro Max with 256GB storage. That’s $37.7 (or 8%) more than the BoM cost for the 256GB iPhone 14 Pro Max when it was launched last year. For comparison, the BoM cost of the 14 Pro Max was only 3% more expensive than that of the 13 Pro Max.
But what exactly makes the iPhone 15 Pro Max more expensive than its predecessors? In short, the 3-nanometer A17 Pro chip, the new tetraprism lens for 5x optical zoom, and the titanium frame.
The A17 Pro is the first chip built using 3 nanometer process technology, making it more powerful and energy efficient. TSMC was only expected to deliver the first 3 nanometer chips in 2024. Still, Apple has reached an exclusive deal with the semiconductor company to get the new 3 nanometer chips for the iPhone 15 Pro this year.
However, this makes the A17 Pro chip cost $30 more than the A16 Bionic used in the iPhone 14 Pro and now in the regular iPhone 15.
iPhone 15 Pro Max is the only model in this year’s lineup to feature a new telephoto lens that enables 5x optical zoom using an advanced tetraprism system. As you might expect, it also costs much more than a regular telephoto lens. More specifically, $25.1 more than the zoom lens on the iPhone 14 Pro Max.
Replacing the stainless steel frame with a new titanium one also cost Apple more money. Counterpoint Research notes that the new titanium alloy costs $7 more than the previous one. At the same time, Apple has saved some money on RAM, NAND flash, and display, as these components have become cheaper this year.
The most profitable iPhone
Interestingly, despite the increase in production costs and being the most expensive iPhone to make, the iPhone 15 Pro Max is still the model with the highest profit margin in this year’s lineup. It’s worth noting that Apple has decided to eliminate the 128GB version, pushing the starting price to $1,199 with the 256GB version.
The report also points out that Apple has reached a level with “significant control” over its products’ design, scalability, costs, and profits, which many other companies don’t have. However, one thing to keep in mind is that the report doesn’t take into account R&D and shipping costs.
You can find the full report on the Counterpoint Research website.
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