Despite the increase in iPhone 16 prices, are the iPhone 15s much more expensive to produce?

It’s been a few weeks since Apple launched the new iPhone 15, and now we know more about its production costs. As numerous reports have noted in recent months, Nikkei Asia also claims that the production prices of the new iPhone 15s have exploded, but this has not changed the price scale much this year. Apple even reduced the prices of the iPhone 15 in France, thus reducing their margins.

P.Total component cost for iPhone 15 Pro Max is currently estimated at $558This represents a significant increase of 12% over its predecessor, the iPhone 14 Pro Max, which was released in 2022. This figure marks the highest total component cost ever for an iPhone. By comparison, components for Apple’s “Pro Max” iPhone models between 2018 and 2021 cost between $400 and $450.

iPhone 16 could be even more expensive

The price increases are explained by the rising costs of various key smartphone components. For example, the telephoto lens of the iPhone 15 Pro Max, it now costs $30, a staggering 380% increase over the previous model. Similarly, the titanium frame cost $50, a 43% increase over the stainless steel frame used in previous devices. Equal The price of the A17 Pro chip is set at $130, an increase of 27% compared to the A16 Bionic chip.

Price increases are also seen in other models in the iPhone 15 series. Components for the standard iPhone 15 cost $423, up 16% over the iPhone 14. The cost of the iPhone 15 Plus is calculated as $ 442, an increase of 10% compared to the previous model, while the cost of the iPhone 15 Pro sees an increase of 8% for a total of $ 523.

The company chose to absorb the impact of these increased expenses rather than increase prices. The problem is that as Apple continues to absorb these increased production costs, it will begin to feel an impact on its profit margins. Therefore we imagine: The company may decide to increase the retail prices of iPhone models when next year’s iPhone 16 series is launchedbecause their production is expected to be more expensive than existing models.