Report says BoM’s cost to manufacture sub-6GHz model of iPhone 14 pro max is $454. Taking into account the 44% mix of mmWave models by the end of 2022, the average cost of materials for the iPhone 14 Pro Max comes out to around $464. The report also claims that the production cost of one unit of the iPhone 14 Pro Max is 3.7% higher than that of the iPhone 13 Pro Max.
Why the manufacturing cost of iPhone 14 Pro Max increased?
The main components that will increase the manufacturing cost of the iPhone 14 Pro Max are: chipset, display, and camera. Apple’s latest A16 bionic The chipset has been designed on 4nm architecture. It contains 16 billion transistors, which is 6.7% more than the older chip. The latest chipset also promises better CPU, GPU, neural engine and camera ISP performance. The report claims that the chip adds $11 to the BoM cost which is 20% of the total production bill.
Who supplies the display used in the iPhone 14 Pro Max? SAMSUNG And also supports a bright HDR and outdoor display. It also supports the always-on feature for easy viewing. All these features also increased the cost of the model’s performance components.
The iPhone 14 Pro Max also packs a 48MP main camera, which includes a larger quad-pixel sensor and offers second-gen sensor-shift stabilization. The camera setup is composed of parts that are supplied by various companies.
Apple gets the image sensor Sonywhile the 7P is provided by the lens Sunny Optical, Largan Digital and GSEO. Meanwhile, the camera module is supplied by LG Innotek, The front camera also supports autofocus and includes a 6P lens provided by GSEO and Sunny Optical. So, due to these upgrades the cost of the camera has also gone up by $6.30.
However, United Cellular Group’s share of the cost for the Pro Max model has dropped to 13% due to falling component prices as 5G technology becomes more popular. Apple has also continued its efforts to diversify its supply sources, which has also increased production costs.
In addition, Apple has also self-designed several components including the A16 Bionic chipset, PMIC, audio, connectivity and touch controls. This accounts for around 22% of the total BoM cost of the iPhone 14 Pro Max.