Smartphones, especially the top-end ones, are becoming pricier because the parts used in making them are getting more costly. Recently, all four models of the iPhone 15 series were taken apart by Nikkei Asia, and they figured out how much it costs to make them.
It’s important to mention that this report focuses on the basic storage model. The iPhone 15 Pro Max is estimated to be priced at $558, which is 12% higher than the iPhone 14 Pro Max from 2022. Between 2018 and 2021, the parts for Apple’s “Pro Max” iPhones typically ranged from $400 to $450 in cost. However, in 2022, component costs surged by about 20%, before reaching the current peak price of $558.
As anticipated, the majority of components within the iPhone 15 Pro Max are pricier compared to last year’s 14 Pro Max. For instance, the telephoto camera’s cost for the iPhone 15 Pro Max has surged to $30, marking a substantial 380% increase from the previous model. Similarly, the titanium frame is now priced at $50, signifying a 43% increase when compared to the stainless-steel frame used in previous devices. The new A17 Pro chip is valued at $130, showing a 27% increase over the A16 Bionic chip.
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Cost increases affect the rest of the iPhone 15 series as well. The components for the regular iPhone 15 have a price tag of $423, reflecting a 16% increase when compared to the iPhone 14. Meanwhile, the iPhone 15 Plus is estimated at $442, indicating a 10% increase over its predecessor. The iPhone 15 Pro has seen an 8% increase, now standing at $523.
Normally, when component costs rise, the retail prices of products tend to go up. However, this year, despite the increased costs, Apple decided not to raise the prices of its iPhone models and absorbed the extra expenses. The significant change was discontinuing the 128GB Pro Max model. Nikkei Asia indicates that the 256GB storage used in the iPhone 15 Pro Max costs only 5% more than the 128GB storage used in the iPhone 14 Pro Max.
A research firm in Tokyo, Fomalhaut Tecno Solutions, working with Nikkei, suggests that if Apple keeps covering the increasing production costs, it might eventually affect their profits, consequently, So, Apple might increase the prices for the iPhone 16 series in 2024 to cover these rising production costs.