Teardown of iPhone 14 lineup reveals 20% higher production cost
Apple’s iPhone 14 series is the company’s most expensive to produce in years. ONE Nikkei Asia teardowns of iPhone 14 models reveal that Apple took some of the production costs and slimmed down its profit margins a bit. Apple did not raise the prices of new iPhones in the US and some other markets, but it did for some key markets, including the UK, Germany and Japan.
As per Nikkei Asia, the iPhone 14 sees an additional production cost of about 20%, a record high, across three iPhone 14 models. Niatake Kashio of Formalhaut Techno Solutions helped with the teardown research and found that the cost of the iPhone 14 Pro Max has increased by more than $60.
Formalhaut estimates that the iPhone 14 Pro Max will cost $501 in components, although the cost of the iPhone Pro Max models has usually landed between $400 and $450.
The iPhone 14 Pro and 14 Pro Max’s A16 Bionic chips cost $110 each — which Nikkei points out, was more than double the price of the A15 Bionic. Only Samsung and TSMC are able to mass produce 4nm chips. The iPhone 14 Pros also have new Sony-made camera sensors that are larger and capture more light. These have increased by around 50%.
In addition, 32.4% more of the iPhone 14’s components come from US suppliers (up about 10% from the iPhone 13), increasing costs. The amount of South Korean components has decreased by 5 points to 24.8%.