Apple iPhone 14 Pro Max, shockingly, costs only 3.7% more than the total cost of manufacturing one unit of iPhone 13 Pro Max in 2022. The production cost of a product is proportional to the materials used in it. Additionally, the cost covers all components assembled to finalize the product. This blog is about the iPhone 14 Pro vs. iPhone 13 Pro production cost.
Considering the year-on-year analysis, the cost of producing the iPhone 14 Pro is subsequently considerable. Do you know why we are saying that? Sighting the inflation and other factors impacting the production, it is not high. The company has also used better components in its latest flagship device.
iPhone 13 Pro vs. iPhone 14 Pro: Cost Overview
As mentioned above, the 14 Pro’s production cost is slightly higher than its counterpart. The last year’s sensation with 128GB of NAND flash costs nearly $464 to the company. Counterpoint Research further states that the cost is nearly 3.7% higher than the material cost of the iPhone 13 Pro Max.
Getting into the technical details, the increase in cost relies on the display, camera, and display changes. All of these components share a significant part of the BOM. Apple’s decision to introduce the A16 Bionic chip costs $11 extra than the A15 Bionic chip. The upgradation cost adds 20% to the total production cost.
Similarly, the new iPhone 14 pro display adds a total of 20% cost to the total bill of the material. In addition, Apple iPhone 14 Max Pro’s 48 MP camera with quad-pixel image sensor costs $6.30 extra to the company. This increases the company’s cost of producing an advanced camera by 1% to 11% (year over year).
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So, these are the components that increased the company’s overall bill for producing the iPhone 14 Pro. Some components have saved a few bucks for Apple. For instance, the cellular group reduces the overall cost by 1%. This happened due to a rapid decrease in the prices of components for 5G technology due to its enormous popularity.
Counterpoint Research says that the cost of Made-For-Apple components has increased and covers 22% of the BOM (bill of the material). In a nutshell, the overall cost of the iPhone 14 Pro has increased by $17 compared to the Apple iPhone 13 Pro. This is lower than the estimated production cost of the iPhone 13 Pro over the iPhone 12 Pro, which stands at $21.50.