The new iPhone 16 series is costing Apple more to manufacture than the iPhone 15, according to industry analysts. The analysis revealed that rising component prices and advancements in technology have contributed to the increased costs. Specifically, the iPhone 16 Pro Max, one of the flagship models, now costs approximately $485 to produce, compared to $453 for the iPhone 15 Pro Max.
Significant Cost Differences
The report from TD Cowen highlights several key areas where costs have increased. The iPhone 16 Pro Max saw its biggest price hikes in the display and rear camera module, both of which cost around $80 each. The rear camera module, in particular, has seen a $10 increase from the previous generation.
Meanwhile, the non-Pro iPhone 16 model also costs more to produce, with a bill of materials (BOM) totaling $416, compared to $395 for the iPhone 15. These price hikes reflect rising component costs across the board, as Apple continues to enhance the capabilities of its flagship devices.
Memory and Processor Upgrades Drive Up Costs
Another significant contributor to the increased manufacturing costs is the rise in memory and processor prices. The iPhone 16 Pro Max uses 8GB of memory, which now costs $17, up from $9 in the iPhone 15. Additionally, the new A18 processor in the iPhone 16 series costs $45, a jump from $35 for the A16 chip used in the iPhone 15 models.
As Apple continues to innovate, the cost of producing its top-tier iPhones is rising. These increases, driven by advancements in display, camera technology, and processors, reflect the company’s commitment to pushing boundaries. However, the question remains whether these costs will be passed on to consumers in future releases.
