Published on October 18, 2023, 8:10 pm
Image source: Fox News
The iPhone 15 Pro Max is reportedly more expensive for Apple to build compared to its predecessor, the iPhone 14. According to a teardown analysis by Nihon Keizai Shimbun and Fomalhaut Techno Solutions of Japan, the bill of materials for the iPhone 15 Pro Max is estimated to be around $558, which is about 12% higher than the cost of the iPhone 14 Pro Max.
The increased cost can be attributed to several factors. The display of the iPhone 15 Pro Max is said to be 10% more expensive than that of the iPhone 14 version. The titanium frame used in the new model has pushed up costs by 43%. Additionally, the A17 Pro chip used in the device costs 27% more than its predecessor, the A16 Bionic. The telephoto camera and its tetraprism system are also reported to be a staggering 3.8 times more expensive than those in the previous model.
It’s worth noting that other models in the iPhone 15 lineup also experienced similar increases in production costs. For example, the bill of materials for the iPhone 15 Pro is estimated at $523, an increase of about 8% compared to its year-ago counterpart. The iPhone 15 Plus costs $442, which is approximately 10% higher than the cost of the iPhone 14 Plus.
While Apple aims to bring down hardware costs relative to selling prices to maintain profit margins, sometimes introducing new features can lead to higher production costs instead. It’s important to strike a balance between innovation and affordability.
Overall, these findings provide insight into how product prices are determined and how they relate to production costs. They debunk misconceptions about Apple’s pricing strategy and shed light on why certain devices may come with higher price tags. As technology advances and new features are introduced, it’s expected that production costs will rise accordingly.
As always, it’s important to consider the broader context when evaluating these cost differences. Individual component costs, retail prices, and storage capacities are just a few of the factors that can impact the overall value proposition of a product.
Original article posted by Fox News