The iPhone 14 Pro Max, the most expensive phone in Apple’s offering brings considerable profits for the American company, representing almost three times the material costs of manufacturing.
According to Counterpoint Research analysis, the iPhone 14 Pro Max is 13% cheaper to manufacture than its predecessor iPhone 13 Pro Max, with significant savings resulting from cheaper components related to 5G connectivity, a mature technology. Instead, costs have increased by 3.4% by including other more powerful components, such as the new 48MP main camera and the inclusion of an always-on display.
What and how has changed on the iPhone 14 Pro Max component list:
- The A16 Bionic chip costs Apple about $11 more per unit than its A15 Bionic predecessor.
- Components in the general “processing” category, which includes the A16 Bionic chip, now account for 20% of the total cost of materials.
- Components designed directly by Apple have a higher share of the total manufacturing cost. Compared to iPhone 13 Pro Max’s predecessor, they account for 22% of the total manufacturing cost.
- Apple pays about $474 to produce one with mmWave support and 128GB storage
- Producing the 128GB version, featuring 5G connectivity in the sub-6GHz band only, costs $454.
According to analysis published by Counterpoint Research the list of main iPhone 14 Pro Max components leads to a cost of only $454 to manufacture the base version of the phone, the one with 128GB internal memory. Of course, this figure does not include the many hidden costs, from assembly labour paid to OEM partners in countries such as China and India, to logistics costs (warehousing and shipping), to taxes on non-EU imports. Not to be overlooked are the hard-to-quantify costs of years of research and development of the technologies behind each component, plus the software side.
Adding to the “insult” offered to European consumers, Apple is selling the iPhone 14 Pro Max at an official price of $1079.99 in base trim, valid in US stores. In contrast, the price of 1335.99 euros announced for European stores is inflated in real terms and from the difference in exchange rates, to the detriment of the European currency, and from the more or less discretionary mark-ups applied by the various stores.