Counterpoint Research offers to find out how much it costs Apple to produce the iPhone 14 Pro Max. Cupertino never discloses its profit or production costs for each individual device. The only thing Apple reports is the total gross profit (the difference between revenue and cost). Counterpoint Research calculated that the cost of the iPhone 14 Pro Max with 128 GB of RAM is $464, which is 3.4% more expensive than the iPhone 13 Pro Max. The main reason for the increase in cost is the new 48 MP camera, as well as the Always On Display.
Prices for some components have decreased this year, and most of all this affected cellular communications. As the popularity of 5G technology has grown, the share of cellular costs in the iPhone 14 Pro Max has fallen to 13%. The A16 Bionic processor costs Apple about $11 more than the A15 Bionic, and
in general, this category of components accounts for 20% of the total cost of the product. The iPhone 14 Pro Max has more in-house developed parts, accounting for 22% of the total cost of manufacturing a smartphone. Summing up all this data, Counterpoint Research concluded that the cost of the 128 GB iPhone 14 Pro Max (mmWave) is at $474, and the production of the same model, but with sub-6GHz support, costs $454.
Apple works closely with its suppliers and often pre-prices all components. These figures only cover materials and do not include other manufacturing costs such as assembly, packaging or transportation services. Be that as it may, consumers have always been interested in knowing the real price of the iPhone and how the cost of components affects Apple’s pricing. According to Counterpoint Research, the most notable increase in the cost of manufacturing Apple smartphones occurred during the transition from iPhone 11 to iPhone 12. Then the cost of components increased by 26%. Mainly due to the use of 5G modems.
Source: Trash Box
I’m Meagan Diaz, a news writer and author at World Stock Market. My main focus is on technology and stock market trends, and I’m passionate about helping readers stay informed on the ever-changing landscape. I bring extensive knowledge of the industry to my work as well as a knack for storytelling that makes my articles both accessible and engaging.
