iPhone 16 Pro Max material cost over $3,000, 7% boost over predecessor
According to the latest market researcher TD Cowen, the overall material cost of manufacturing a 256GB version of the iPhone 16 Pro Max, including components, assembly, packaging, etc., is about $485 (about Rs. 3,400). This marks an increase in Apple's manufacturing costs on its flagship phone over the previous generation.
In comparison, the bill of materials (BOM) cost of the previous-generation iPhone 15 Pro Max was $453, and the cost of the iPhone 16 Pro Max went up by $32, an increase of about 71 TP3T. the analysis shows that the most expensive components in the iPhone 16 Pro Max are still the display and the rear camera module, both of which cost $80 individually. Each accounted for 161 TP3T of the total cost.
Significant rise in camera module and storage costs
The cost of the camera module on the iPhone 16 Pro Max has increased by $10 compared to the iPhone 15 Pro Max, making the camera the component with the largest single increase. The cost of RAM and storage has also gone up, by $5 each. Apple has clearly invested more in the core features of the new iPhones, especially in camera technology and performance, driving up material costs.
The cost of the standard iPhone 16 has also gone up
Not only the Pro Max series, but also the cost of materials for the standard iPhone 16 has risen. data from TD Cowen shows that the bill of materials cost for the standard iPhone 16 is $416, an increase of $21 from the $395 of the previous generation iPhone 15. This means that Apple has increased its investment in manufacturing costs for both high-end and standard models.
Apple's strategy to keep margins high
Despite the increase in material costs for the iPhone 16 series, Apple has been able to maintain its high profit margins through a precise pricing strategy. Consumers may not feel a significant price change despite the increase in production costs, a proven strategy that Apple has long used to control production costs and increase the premium power of its products.
summarize
With the material cost of the iPhone 16 Pro Max exceeding $3,000, Apple's efforts to enhance the core features of its products have been accompanied by an increase in manufacturing costs. However, through the optimization of components and an ever-improving user experience, Apple has still been able to take the lead in a highly competitive market. It is expected that this trend will continue in the future as technology advances further.
