Apple launched a series IPhone 14 In the month of September 2022, with great features, most of which were exclusive to Pro models only, and that is why there was a strong demand for both the iPhone 14 Pro and Pro Max. However, the company did not raise the prices, as the iPhone 14 Pro Max price is $ 1099. And the question here is, what is the real cost that Apple pays in order to manufacture the iPhone 14 Pro Max, and the amount of profit that it gets from each sale of its latest device?
IPhone 14 Pro Max
A new report from the market research company Counterpoint revealed that the cost of the iPhone 14 Pro Max increased by only 3.4% when compared to the cost of manufacturing the previous version, the iPhone 13 Pro Max, and the market research company relied on calculating the cost of iPhone XNUMX devices. Camel On what is known as, the BoM bill of materials, which is a list of the components and all the parts needed in order to manufacture the iPhone, and according to the report, the iPhone 14 Pro Max has an area of 128 GB, and its manufacturing cost is $ 464, which is a slight increase when compared to the iPhone. iPhone 13 Pro Max, and the main reason for this increase is due to the new 48-megapixel rear camera, in addition to the new screen that works permanently.
Components of the iPhone 14 Pro Max
There are a lot of components that go into manufacturing the iPhone, and this includes the processor, camera, screen, and others, and of course Apple does not disclose the cost of these parts, but the market research company Counterpoint has dismantled the latest Apple device and determined the cost of each component so that we finally get the bill of materials. Or the real cost in order to manufacture the iPhone 14 Pro Max, and here is the cost of the components of the latest Apple device:
- The two most expensive components in the iPhone 14 Pro Max are the always-on display and the newer A16 processor (it costs the company $11 more than the previous processor) and each account for nearly 20% of the total bill of materials.
- Components for cellular wireless made up 13% of the total bill.
- Apple also upgraded the camera and this contributed to the cost increase by $6.30.
- Components that Apple designed themselves (including power circuitry, audio, connectivity, and touch control) cost more, accounting for 22% of the iPhone 14 Pro Max's total bill of materials.
- The manufacturing cost of the iPhone 14 Pro Max is 128 GB and network mmWave up to $474. While when replacing mmWave with a Sub-6GHz network, the cost of manufacturing the device is about $454.
Finally, Apple sells the iPhone 14 Pro Max for $ 1099, but the real manufacturing cost that the company pays is $ 464 (approximately 42% of the selling price), which means that Apple earns $ 635 on every device it sells. However, this amount is not pure profit, because there are other important costs such as assembly, packaging, distribution, salaries and let's not forget the money that goes into research and development, sales and marketing.