iPhone 16 models cost a little more to make than the iPhone 15
by Malcolm Owen · AppleInsiderAnalysts say the iPhone 16 series costs Apple a few more dollars to produce than its iPhone 15 counterparts thanks to rising component costs.
Aside from physical teardowns of the latest iPhone models, there are also cost breakdowns. One such analysis of Apple's iPhone 16 range pricing up individual components has determined that the new models cost more than the previous iPhone 15 generation.
This is not entirely surprising, as the iPhone 15 Pro Max cost approximately 12% more than its iPhone 14 counterpart.
The figures from TD Cowen say that a 256GB iPhone 16 Pro Max costs Apple about $485 to manufacture, including the components, box, and assembly process. By comparison, the iPhone 15 Pro Max had a so-called Bill of Materials (BOM) of $453, about $32 cheaper than the newer model.
The non-Pro models are also more costly, with the iPhone 16 BOM coming up to $416. The iPhone 15 BOM was $395, approximately $21 cheaper per handset.
For the iPhone 16 Pro Max, the most costly component is a tie between the display and the rear camera module at $80 or 16% of the total apiece. The camera is also the component that got the biggest increase at $10 over the previous generation.
While remaining the same in quantities, the memory and storage in the Pro Max have increased by the highest amounts relative to their cost. Each rose by $5 to $17 and $22 respectively.
On the iPhone 16's BOM, the display is the most expensive at $65 or 16% of the total BOM. Again, the biggest price increase relative to cost stems from memory, from $9 in the iPhone 15 for 6GB to $17 for 8GB.
Other major cost changes in the iPhone 16 BOM include the A18 at $45 versus the A16 at $35. Meanwhile, the addition of the Camera Control and Action Button adds $3 to the Sensors list.
Softening sentiment
The same report adds in that there were no changes to build estimates in the supply chain for the second half of 2024. However, sentiment is apparently softening over time.
The softening is attributed to Apple Intelligence, with the analysts believing the release over several months to be behind it. There are also "competitive headwinds" in China, with the foldable Huawei Mate XT doing far better than expected.
Research indicates to the analysts that July sales were stable in China, at 24.2 million, a 30% increase year-on-year. However, there are "tougher compares" starting from September, with softer market demand in the near term.
TD Cowen's third-quarter builds forecast for iPhone is unchanged at 45 million units, while fourth-quarter builds stay at 80 million units. The iPhone 16 range will make up approximately 65 million units.
The mix of iPhone 16 Pro and Pro Max units to others is higher than the iPhone 15 for the second half of the year, the analysts believe. The iPhone 16 Pro and Max units mix is said to be 66%, against 58% for the iPhone 15 Pro and Max in the same period last year.
1 Comment
y2an 210 comments · 15 Years
About 1 day ago
They are taking assembly costs to be equal but the improvements in design for repair will lower assembly costs.
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