He reports that Specialist Service Nikkei Asia. As is the case every year, the new iPhone models were not only examined very closely there, but the costs for the production of individual components were also scrutinized.
Nikkei Asia received many details from suppliers – but there is no 100 percent certainty that the data is genuine. Still, what Nikkei Asia found is quite interesting. According to this, the iPhone 14 Pro series’ A16 Bionic chip costs around $110, which is 2.4 times the price of the A15 found in the iPhone 13 series and the new iPhone 14.
Nikkei Asia disassembled three models of the iPhone 14 series for the analysis, examining components such as the processor and the camera. The production costs of the new series are estimated to be 20 percent higher than the previous iPhone generation.
Parts prices go up, profit goes down
Calculations show that the iPhone 14 Pro Max costs Apple $501 in parts to produce, over $60 more than the iPhone 13 Pro Max. The company describes this as a high cost of production and says part prices for Max models have increased since iPhone XS Max debuted in 2018 between $400 and $450. According to the reports, the higher production costs are mainly due to the A16 Bionic chip, because that is where the largest price increase can be found in production.
The A16 Bionic uses a 4-nanometer process pioneered by Apple’s chip supplier TSMC. The A15 was still manufactured using the 5-nanometer process. The new camera components in the iPhone 14, including Sony’s CMOS image sensor, are 30 percent larger than in previous models and now cost about 50 percent more, at $15.
Parts for the iPhone 14 come primarily from US suppliers, which account for 32.4 percent of the cost, up 10 percent from the iPhone 13. The report also claims that higher production costs have translated into lower profits, as Apple increased iPhone prices in some countries like Japan and Australia, but not in the US and other markets.
Tag: iphone design, iphone 14, apple iphone, iphone release