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Apple's iPhone 16 Pro Max manufacturing cost REVEALED!

A recent report reveals the production cost of Apple's latest flagship, the iPhone 16 Pro Max, shedding light on the price difference compared to its predecessor and the profit margins Apple enjoys. Despite a slight increase in production cost, attributed to an upgraded display and camera system, the iPhone 16 Pro Max remains a high-profit product for Apple.

Apple iPhone 16 Pro Max manufacturing cost REVEALED! gcw
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First Published Oct 7, 2024, 11:45 AM IST | Last Updated Oct 7, 2024, 11:45 AM IST

This year's starting price for the iPhone 16 Pro Max model in India is Rs 1.40 lakh, but if you reside in the US, you can acquire it for less. To manufacture these high-end iPhones that you can purchase for lakhs, Apple doesn't spend a lot of money, though. Now that the cost of producing the iPhone 16 Pro Max model has been revealed, it was more expensive for Apple than producing the iPhone 15 Pro Max model from the previous year.

The information on the iPhone 16 Pro Max's bills of materials (BoM) is derived from TD Cowen, which AppleInsider cited in their article. Compared to the 15 Pro Max model, the total cost of producing the 256GB iPhone 16 Pro Max for Apple has increased somewhat by around 3,000. While the business has paid $453 (about Rs 37,000) to manufacture one iPhone 15 Pro Max model, Apple is paying $485 (around Rs 40,000) to make the 16 Pro Max variation.

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The iPhone 16 Pro Max's increased production costs may be ascribed to the upgraded display and camera unit, which costs $80 (about Rs 6,640) and accounts for the largest portion of the device's component costs. For each model, the new A18 Pro bionic chipset costs $45 (about Rs 3,730), the new RAM unit costs $17 (approximately Rs 1,400), and the new camera control button costs $19 (approximately Rs 1,570).

Based on these component prices and the actual retail price of $1,199 (about Rs 99,500) in the US or Rs 1.44 lakh in India, it is evident that Apple is profiting handsomely from the sale of the new high-end iPhone models. That being said, the business also has to pay for personnel, marketing, packaging, and the technological advancements included in the new model.

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The A18 Pro chipset powers a larger 6.9-inch ProMotion OLED display on the new iPhone 16 Pro Max. It still includes a triple camera system, and the battery has been strengthened to handle its larger screen and higher power levels.

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