iPhone 16 Pro Max Parts Cost Report: Why Apple Flagship Costs More

Following its announcement by Apple last month, the iPhone 16 series has been making the rounds online with breakdown films and durability testing of the iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max. The iPhone 16 Pro Max’s bill of materials (BOM) data, which shows the device’s overall production cost, most recently became public online. The most recent flagship has a BOM that is $32 more expensive than the one before it. The new iPhone 16 Pro Max’s camera, display, and CPU were updated by Apple this year, which increased the device’s manufacturing costs.

AppleInsider was able to obtain a pricing breakdown from TD Cowen, which shows that the 256GB iPhone 16 Pro Max costs $485 to build overall. This is $32 more than the $453 BOM cost of the iPhone 15 Pro Max.

At $80, the display and rear camera system unit are the most expensive components of the iPhone 16 Pro Max, making up around 16 percent of the total cost of manufacturing. The iPhone 15 Pro Max costs $75 and $70 for the identical display and rear camera components, respectively.

According to a TD Cowen report, the new Camera Control button on the iPhone 16 Pro Max costs $19, or approximately Rs. 1,500, which is only $3 more than the Action Button on the iPhone 15 Pro Max. The price of the iPhone 15 Pro Max was $12, while the new RAM technology costs $17. The internal storage costs $25, while the new Bionic chip costs $45.

The base model of the iPhone 16 Pro Max costs $1,199, and the $485 bill of materials seems to account for almost one-third of the total cost. This suggests that Apple’s gross margin for each unit sold is 59.6%.

The 256GB edition of the iPhone 16 Pro Max costs Rs. 1,44,900 in India. With a 6.9-inch Super Retina XDR OLED display that can reach 2,000 units of peak brightness and a refresh rate of 120Hz (ProMotion), it is powered by the new A18 Pro processor. A 48-megapixel wide main camera, a 48-megapixel ultra-wide-angle camera, and a 12-megapixel telephoto camera make up its triple back camera configuration. On the front of the phone is a 12-megapixel TrueDepth camera.

With a new and dedicated camera shutter button on these high-end Apple phones, the company has incorporated new hardware and technology.

However Apple kept production expenses down with the newest models.

According to TD Cowen’s estimations, the manufacturing cost of a 256GB iPhone 16 Pro Max for Apple would have been around $485. This is the total cost, which takes into account the box, the assembly procedure, and every component.

The estimated bill of materials (BOM) for the Apple iPhone 15 Pro Max was $453. In a similar vein, the iPhone 15’s projected BOM was $395, and the iPhone 16’s BOM got up to $416. It goes without saying that there is not much of a production cost difference between the iPhone 16 and iPhone 15 versions.

Nonetheless, it is astonishing to observe how effectively Apple has controlled cost growth in spite of the escalating cost of individual parts. For instance, the iPhone 16 Pro Max’s 8GB RAM is purportedly $17. The projected cost of the previous model’s 6GB RAM was only $9.

Additionally pricey is the display technology found in the most recent iPhone. The most recent iPhone Pro Max models also feature bigger screens. This would have added to the BOM’s growth even further.

There is no denying that the cost of production and the newest technology are greater. Apple hasn’t raised the starting price of the newest iPhones, meanwhile, in spite of the hardware’s rising costs. In comparison to previous year’s models, the corporation has maintained the same pricing or significantly reduced them.