iPhone 14 – iPhone 14 costs 20% more to produce than iPhone 13.. Here are 3 reasons behind it
Nikkei Asia revealed that the prices of components for the latest iPhones rose by 20%, reaching an all-time high. The production cost of the iPhone 14 Pro Max is $501, which is a massive increase over its predecessor’s $461 cost, mainly because the A16 Bionic chip costs just $110.
iPhone 14 costs 20% more to produce than iPhone 13
according to Nikkei Prices for the Pro Max have ranged between $400 and $450 since the model was introduced in 2018. The news site made a reasonable assumption that if Apple takes a hit in manufacturing cost while not touching its US prices, the company will likely get a earnings.
The A16 Bionic chip costs about 2.4 times more than the A15, which is also available in two non-Pro models – the iPhone 14 and iPhone 14 Plus. Another reason for the price hike is Sony’s new CMOS sensors that are 30% larger in size but 50% more expensive, up to an initial cost of $15.
Apple is also buying its displays from Samsung Display, a deal that’s been going on for several years. iPhone 14 components from the US-based companies make up nearly a third of the total cost and are 10% more than in 2021.
South Korea is the second largest supplier of phone components, and the switch is mainly attributed to Apple developing its own products, such as chips.
China’s share has shrunk further, as Cupertino tries to reduce dependence on the Asian market. Previous reports have not only revealed parts, but the assembly process is also moving out of the country.
The disassembly revealed that there are no additional hardware components for the Emergency SOS function, as it is software-based, which means it may reach more markets in the near future.
Are you planning to buy a device from the iPhone 14 series?