New Report Reveals Cost of Manufacturing iPhone 14 Pro Max: A Detailed Breakdown of Components and Prices
Counterpoint Research recently released a report that provides insights into the cost of manufacturing the iPhone 14 Pro Max. The report shows that the cost of producing a 128GB iPhone 14 Pro Max with a blended bill of materials (BoM) is approximately $464, which is a 3.7% increase compared to the iPhone 13 Pro Max’s cost of $447.44. The BoM is a detailed list of all the parts that are needed to manufacture a final product. It is typically built in layers or hierarchy, with top-level assemblies, sub-assemblies, and finally individual components.
The cost of producing an iPhone 14 Pro Max for the US market with mmWave technology is estimated to be $474, while the cost of producing the sub-6GHz model for other markets is estimated to be $454. This is compared to the 128GB iPhone 14 Pro Max’s marked US price of $1,099.
The report shows that the new Apple-designed A16 Bionic chipset accounts for 20% of the phone’s total BoM cost, which is $11 more than the previous version. The new iPhone 14 Pro Max display with AOD functionality accounts for a 1% increase in the BoM over the iPhone 13 Pro Max. Furthermore, the new 48-megapixel main camera and supporting modules have increased the cost of the new phone by approximately $6.30.
While the report covers the cost of components, it does not include assembly, packaging, or distribution costs. However, it notes that Apple’s self-designed parts inside the iPhone 14 Pro Max, such as touch control, connectivity, audio, and power management circuits, account for a larger portion of the phone’s overall cost. According to the report, self-designed parts make up approximately 22% of the phone’s BoM.
Moreover, the report indicates that some component prices decreased in 2022 compared to 2021, with cellular components experiencing one of the most prominent price drops. Therefore, the report provides a detailed analysis of the factors driving the cost of manufacturing the iPhone 14 Pro Max and insights into the changing trends in the smartphone industry.
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