When the component cost, of “blended bill of materials,” of Apple’s new iPhone 15 Pro Max is calculated, the handset costs about eight percent more to manufacture than the iPhone 14 Pro Max.
Per Counterpoint Research’s report, which was published yesterday, Apple spends around $502 to make the base model iPhone 15 Pro Max with 256GB storage. This is about $37.7 (or eight percent) more than the BoM cost for the 256GB iPhone 14 Pro Max when it was launched last year. For comparison, the BoM cost of the 14 Pro Max was only three percent more expensive than that of the 13 Pro Max.
The report cites that the most expensive elements of the handset are the 3-nanometer A17 Pro chip, the new tetraprism lens for 5x optical zoom, and the titanium frame.
The A17 Pro is the first chip built using 3 nanometer process technology, making it more powerful and energy efficient. TSMC was only expected to deliver the first 3 nanometer chips in 2024. Still, Apple has reached an exclusive deal with the semiconductor company to get the new 3 nanometer chips for the iPhone 15 Pro this year.
As expected, the new camera components add up, and the 5x optical zoom uses an advanced tetra prism system that costs about $25.10 more than the zoom lens on the iPhone 14 Pro Max.
The new titanium alloy frame retails for about $7 more than the previous generation’s frame, although Apple was able to save some money on RAM, NAND flash, and display, as these components have become cheaper this year.
Even with these increased costs, the iPhone 15 Pro Max is still the model with the highest profit margin for this year’s iPhone lineup. Apple decided to eliminate the 128GB version, pushing the starting price to $1,199 with the 256GB version. The report also points out that Apple has reached a level with “significant control” over its products’ design, scalability, costs, and profits, which many other companies don’t have.
You can find the full report on the Counterpoint Research website.
Via 9to5Mac and Counterpoint Research