A newly published report examines how much it costs Apple to manufacture the iPhone 14 Pro Max. The “blended bill of materials” cost for the flagship with 128GB of storage is $464 (roughly Rs. 38,400), which is a small increase over the iPhone 13 Pro Max. The new Apple-designed chipset, AOD display, and 48-megapixel main rear camera are the primary parameters driving the cost change. These figures also only cover components and do not include assembly, packaging, or distribution costs. Apple released the iPhone 14 series in September 2022 and the iPhone 13 series in September 2021.
Counterpoint Research’s report states that the iPhone 14 Pro Max with 128GB storage has a blended bill of materials (BoM) cost of around $464 (roughly Rs. 38,400), which is a 3.7 percent increase over that of the iPhone 13 Pro Max, which amounts to about $447.44 (roughly Rs. 37,000).
A bill of materials, or BoM, is a detailed list of all the parts that are needed to produce a final product. It is typically built in layers or hierarchy, with top-level assemblies, sub-assemblies, and finally individual components.
The mmWave model for the US market is expected to cost $474 (roughly Rs. 39,000), while the sub-6GHz model for other markets is expected to cost $454 (roughly Rs. 37,600). For comparison, the 128GB iPhone 14 Pro Max has a marked US price of $1,099 (roughly Rs. 90,900).
According to the detailed insights cost breakdown, Apple spends $11 (roughly Rs. 900) more on the A16 Bionic chipset than its forerunner, bringing the constituent cost to 20 percent of the total BoM price.
The new iPhone 14 Pro Max display with AOD functionality accounts for a 1 percent increase in the BoM over the iPhone 13 Pro Max. Aside from that, the 48-megapixel main camera and supporting modules have increased the price of the new phone by an approximated $6.30 (roughly Rs. 500).
Prices for Cellular connectivity parts on the iPhone 14 Pro Max are roughly 13 percent lower than on the iPhone 13 Pro Max. Some component prices had decreased in 2022 compared to 2021, with cellular components seeing one of the most prominent price drops.
Apple’s self-designed parts inside the iPhone 14 Pro Max, such as the 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 now make up about 22 percent of the phone’s BoM.