Apple's iPhone 15 Pro Max Costs 8% More To Manufacture Than Its Predecessor: Report

A report by Counterpoint Research has revealed that the production cost of Apple Inc.’s AAPL latest flagship, the iPhone 15 Pro Max, has surged by 8% compared to the previous model.

What Happened: The research states that the Bill of Materials (BoM) cost for a 256 GB iPhone 15 Pro Max stands at approximately $502. This figure is $37.70 higher than the production cost of its predecessor, the iPhone 14 Pro Max, reported 9To5Mac. 

The escalated cost is attributed to the newly introduced 3-nanometer A17 Pro chip, the Tetraprism lens for enhanced 5x optical zoom, and the shift to a titanium frame. 

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The A17 Pro chip alone costs Cupertino $30 more than the A16 Bionic used in the iPhone 14 Pro. 

The fresh telephoto lens and the titanium frame, which replaced stainless steel, have added an extra $25.1 and $7 to the cost, respectively.

Despite the amplified production costs, the iPhone 15 Pro Max maintains the highest profit margin in Apple’s lineup this year. 

This is mainly due to the discontinuation of the 128 GB variant and the increased base price of $1,199 for the 256 GB model.

The study also commented on Apple’s significant control over its products’ design, scalability, costs, and profits, a power level seldom seen in other firms. However, it does not take into account R&D and shipping expenses, the report noted. 

Why It Matters: The launch of the iPhone 15 lineup back in September marked numerous upgrades, including a revamped camera, extended battery life, and a novel titanium frame. These enhancements, although escalating production costs have seemingly not deterred consumers. 

Earlier this month, it was reported that the iPhone 15 has held over 70% of its value since its launch, outperforming its predecessor, the iPhone 14, which lost over 33% of its value in the first month of its release.

On the flip side, Google Pixel 8 had already lost nearly two-thirds of its value. Notably, smartphones losing their value is normal, but given that the iPhone 15 has fared better than its predecessor and rival, it demonstrates the device’s robust market stance. 

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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