Apple introduced the iPhone 14 series in September 2022. The product range includes four smartphones – iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max. According to Counterpoint Research’s Bill of Materials (BoM) analysis report, the estimated cost for Apple to produce an iPhone 14 Pro Max is 128GB and mmWave technology at $474 (about Rs.39,200).
The report states that the BoM cost to manufacture the sub-6GHz model of the iPhone 14 Pro Max is $454. Considering a 44 percent mix of mmWave models by the end of 2022, the average material cost for the iPhone 14 Pro Max jumps to about $464. The report also claims that the production cost of a single unit of the iPhone 14 Pro Max is 3.7% higher compared to the iPhone 13 Pro Max.
Why the iPhone 14 Pro Max manufacturing cost has increased
The main components that have increased the cost of manufacturing the iPhone 14 Pro Max are: the chipset, the display and the camera. Apple’s latest A16 Bionic chipset is based on a 4nm architecture. It contains 16 billion transistors, which is 6.7% more than the older chip. The latest chipset also promises improved CPU, GPU, Neural Engine, and camera ISP performance. The report claims that the chip adds $11 to the BoM cost, accounting for 20% of the total production bill.
The display used in the iPhone 14 Pro Max comes from Samsung and also supports a brighter HDR and outdoor display. It also supports Always-On function for easier viewing. All of these features have also increased the cost of the model’s display components.
The iPhone 14 Pro Max also houses a 48-megapixel main camera that packs a larger quad-pixel sensor and offers second-generation sensor-shift stabilization. The camera setup consists of parts supplied by different companies.
Apple sources the image sensor from Sony, while the 7P lens is provided by Sunny Optical, Largan Digital and GSEO. Meanwhile, the camera module is supplied by LG Innotek. The front camera also supports autofocus and includes a 6P lens provided by GSEO and Sunny Optical. These upgrades also increased the camera cost by $6.30.
However, the wireless group’s combined cost share for the Pro Max model has fallen to 13% as component prices have fallen as 5G technology becomes more popular. Apple has also continued efforts to diversify its supply sources, which has also increased production costs.
In addition, Apple also designed a number of components itself, including the A16 Bionic chipset, PMIC, audio, connectivity and touch controls. This accounts for nearly 22% of the iPhone 14 Pro Max’s total BoM cost.
