Apple iPhone 15 Pro Max costs $37.7 to build than iPhone 14 Pro Max, says CR

iPhone 15 Pro Max

Global research firm Counterpoint Research’s Teardown and BoM Analysis Service puts the iPhone 15 Pro Max total bill of materials at $502 which is $37.7 or 8% higher than the BoM for iPhone 14 Pro Max launched last year.

iPhone 15 Pro Max Bill of Materials (BoM) Revealed

According to CR, the iPhone 15 Pro Max (8GB+256GB) has a total bill of materials (BoM) of $502. For the unversed, a BoM means the cost of all the components required to manufacture a device. The report puts iPhone 15 Pro Max at $502 which is barely $37.7 higher than iPhone 14 Pro Max (6GB+256GB). There’s a breakup available that dictates where Apple had to pay more and where it saved to get this $502 figure.

The foremost is the Apple A17 Pro Bionic chipset. Built on TSMC’s 3nm fabrication process, it brings 18% more transistors than A16 Bionic and 20% better faster performance. It resulted in an additional cost of $30 added to the BoM.

Apple iPhone 15 Pro Max costs $37.7 to build than iPhone 14 Pro Max, says CR

iPhone 15 Pro Max became the first iPhone to get a 5x telephoto periscope lens with tetraprism, 3D sensor-shift OIS, and other technologies. The entire camera assembly incurred a BoM of $25.1 which includes the entire rear and front cameras, Face ID, and ToF modules, says CR.

Finally, the Cupertino-based giant had to pay $7 extra on titanium alloy casings for the Pro replacing the usual stainless steel. It resulted in 18% higher casings cost and brought down the weight of the device by 20g while providing resilience to scratches and falls.

Turns out there were some areas where Apple had an upper hand in reducing its costs. For instance, the iPhone 15 Pro Max uses 8GB DRAM instead of 6GB on the 14 Pro Max. Even with a higher capacity, the prices of memory sticks in the market are on a downward trend resulting in a 34% drop in cost compared to the predecessor. There are also LTPO panels that both Samsung Display and LG Display are producing, adding another 4% lower pricing on the BoM compared to the iPhone 14 Pro Max.

Overall, Apple was able to acquire all the materials required for a brand-new iPhone 15 Pro Max at $502, a $37.7 higher than the iPhone 14 Pro Max. The Cupertino-based giant is en-route to making huge profits off the sales even with the same price tags ($1,199) on the duo but given the huge margin after labor and logistics, one could assume Apple is minting millions off its various manufacturing units spread across India, China and Vietnam.

Tata Group to manufacture iPhone 17 after acquiring Wistron India

Tata Group

In other news, India’s Tata Group signed a share purchase agreement to acquire Wistron India’s manufacturing facility in Karnataka at a whopping $750 million including a corporate loan from Wistron India’s parent company. Tata Group plans to start manufacturing iPhone 17 (2025) as its introductory model sometime in the second half of 2024 along with Foxconn, Pegatron, Wistron, and Luxshare.

By Editor

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