Thursday, December 8, 2022

Iphone 14 | Falling margins at Apple: New chip in the iPhone 14 Pro twice as expensive as the Apple A15 in the iPhone 14 | apple iphone

Despite significantly higher material costs, Apple did not raise the iPhone prices in the USA this year, which did not please the shareholders at all, the share price fell in line with the assumed margins of the iPhone manufacturer, although it should be noted in this regard that this week some chip manufacturers had issued profit warnings due to the impending recession, including AMD.

But back to Apple: It remains to be seen whether the iPhone sales prices, which have risen significantly in some other regions such as Europe, Australia and parts of Asia, which are probably also partly due to the strong US dollar, can compensate for the falling profit margin. In any case, it can be assumed that the higher production costs of the iPhone 14 Pro (here available at Amazon from 1,300 euros) should nibble on the profit compared to the iPhone 13 Pro.

As Nike Asia (behind paywall) based on a teardown and BOM analysis (Bill of Materials), Apple pays a total of around 20 percent more for the production of the iPhone 14 series than for the predecessors from 2021, alone at TSMC in the 4nm process The Apple A16 SoC produced costs around 2.4x more than the Apple A15 at 110 US dollars, which probably also contributed to the decision to significantly expand the differentiation between Pro models on the one hand and the cheaper iPhones this year.


According to the report, the iPhone 14 Pro Max will cost $501 to produce compared to $461 for its predecessor. The 30 percent larger 48-megapixel camera sensor from Sony also contributes significantly to the higher costs and is 50 percent more expensive than the 12-megapixel sensor in the iPhone 13 Pro Max, the analysts write.

Tag: iphone design, iphone 14, apple iphone, iphone release

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