Pro Max: Apple spends 3.7% more to produce iPhone 14 Pro Max compared to its predecessor: Report – Times of India
The report says that the BoM cost for manufacturing the sub-6GHz model of the iPhone 14 Pro Max is $454. Considering a 44% mix of mmWave models by the end of 2022, the average materials cost for the iPhone 14 Pro Max goes up to around $464. The report also claims that the production cost of a single unit of the iPhone 14 Pro Max is 3.7% more compared to the iPhone 13 Pro Max.
Why iPhone 14 Pro Max manufacturing cost has increased
The main components that have led to the increase in the manufacturing cost of the iPhone 14 Pro Max are: the chipset, the display and the camera. Apple’s latest A16 Bionic chipset is designed on a 4nm architecture. It includes 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 which accounts for 20% of the total production bill.
The display used in the iPhone 14 Pro Max is supplied by Samsung and also supports a brighter HDR and outdoor display. It also supports the always-on feature for easier viewing. All these features have also increased the model’s cost of display components.
The iPhone 14 Pro Max also houses a 48MP main camera, which includes a bigger quad-pixel sensor and offers second-gen sensor-shift stabilisation. The camera setup is made up of parts that are supplied by various companies.
Apple gets 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 which is provided by GSEO and Sunny Optical. So, the camera costs have also gone up by $6.30 due to these upgrades.
However, the combined cellular group cost share for the Pro Max model has dropped to 13% due to a fall in component prices as the 5G tech gets more popular. Apple has also continued its effort to diversify its supply sources which have also increased the cost of production.
Moreover, Apple has also self-designed a number of the components which include the A16 Bionic chipset, PMIC, audio, connectivity, and touch control. This accounts for nearly a 22% share of the overall BoM cost of the iPhone 14 Pro Max.
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