We know: buying an iPhone is not cheap. Over the years, Apple has been raising the price of its flagship phone more and more, and its most loyal customers have felt it in their pockets. Last year, the iPhone 14 set a new record, as its most basic model exceeded 1,000 euros. It is true that inflation has had something to do with it and consequently, manufacturing an iPhone has become more expensive than ever.
According to an analysis conducted by Counterpoint, the manufacturing cost of a 128 GB iPhone 14 Pro Max (which is the base model within the Pro Max range) would reach $474 for Apple. Compared to the previous model (the iPhone 13 Pro Max), this would represent an increase of 3.7%. But what is it that has made it increase so much?
Counterpoint mentions three aspects in particular: the processor, the screen and the camera. The cost increase in these three areas has ended up impacting the final price of the terminal, as we will see below.
Apple’s first 4nm processor
The processor fitted in the iPhone 14 Pro and Pro Max is the A16 Bionic, which has 6.7% more transistors than its predecessor, the A15 Bionic. Its advanced 4nm architecture has resulted in each processor costing $11 more on average and accounting for 20% of the total manufacturing cost. On the other hand, the iPhone 14 Pro and Pro Max also debuted a new, more expensive screen, but with always-on display (“always-on display”) and the ability to reach 2,000 nits of brightness outdoors. In addition, the screens are from Samsung, a brand with which they have been collaborating for many years.
As a novelty, the cameras of the iPhone 14 Pro and Pro Max now reach 48 megapixels, in addition to improving video stabilization. In this case, the sensor is signed by Sony while LG manufactures the module. All these improvements have increased the price of the camera by an additional $6.3.
Finally, it is important to talk about connectivity. Unlike the display, camera and processor, the popularity of 5G has driven down the cost of these modems and reduced the price by 13%.
Why do we pay so much for an iPhone?
Even so, it is normal that you now ask yourself the obvious question: if an iPhone costs $474 to manufacture, why does it cost me as a customer to buy it for more than 1,000 euros? But make no mistake: here we are only talking about the material cost. The final price of a product includes more aspects, such as transport, packaging, stores, logistics and so on. However, whether the price to be paid is fair or not is a debate that we leave to you.
