Production costs for the upcoming iPhone 15 are skyrocketing, setting records for component prices that could be passed on to customers in 2024, Nikkei Asia reports.
It’s been a few weeks now since Apple launched its new iPhone 15 and we now know more about the manufacturing costs. As can be seen from numerous reports in recent months, Nikkei Asia also claims that the production prices of the new iPhone 15s have exploded, but this year there has been no real change in the price scale. Apple even reduced the prices of the iPhone 15 in France, This reduces the margin.
PFor the iPhone 15 Pro Max, the total component cost is now estimated at $558This represents a significant 12% increase over its predecessor, the iPhone 14 Pro Max, which launched in 2022. This value represents the highest total component cost ever incurred for an iPhone. In comparison, component costs for Apple’s “Pro Max” iPhone models ranged from $400 to $450 between 2018 and 2021.
The iPhone 16 could be even more expensive
The price increases are explained by the sharply rising costs of various important smartphone components. The telephoto lens of the iPhone 15 Pro Max, for example is now $30, a staggering 380% increase over the previous model. Likewise, the titanium frame costs $50, a 43% increase over the stainless steel frame of previous devices. Even The A17 Pro chip is priced at $130, a 27% increase over the A16 Bionic chip.
There are also price increases for other models in the iPhone 15 series. The standard iPhone 15’s components cost $423, a 16% increase over the iPhone 14. The iPhone 15 Plus costs $442, a 10% increase over its predecessor, while the iPhone 15 Pro sees an 8% increase, for a total of $523.
Instead of increasing prices, the company has instead opted to absorb the impact of these rising costs. The problem is that by continuing to absorb these rising production costs, Apple should start to feel the impact on its profit margins. That’s why we imagine this The company may decide to increase the retail prices of its iPhone models when the iPhone 16 series launches the following yearas these are also expected to be more expensive to manufacture than current models.