Apple's iPhone 15 Pro Max components are getting more expensive

With the help of technology solutions firm Fomalhaut Techno Solutions, Nikkei disassembled and analyzed the costs of four iPhone 15 models: iPhone 15, 15 Plus, 15 Pro and 15 Pro Max, the smallest capacity version.

The iPhone 15 Pro Max uses a telephoto camera that supports 5x optical zoom and a chip manufactured on a 3nm process. The estimated manufacturing cost of the model – the total cost of all components – is $558, up 12% from the iPhone 14 Pro Max launched in 2022.

Cost of some key components in iPhone 15 Pro Max (Photo: Nikkei)

According to Nikkei , the cost of Pro Max components ranged from $400 to $450 during the 2018-2021 period. Fomalhaut CEO Minatake Kashio pointed out that increasing costs is inevitable to increase the performance of the device. Last year, component costs increased by about 20% compared to a year ago. This trend has continued to this day.

The cost-to-sales ratio of the iPhone 15 Pro Max is 47%, up 1% from the iPhone 14 Pro Max. The price of the telephoto camera – improved from 3x to 5x – is $30, 3.8 times higher than the iPhone 14 Pro Max due to the increased focal length while maintaining a small lens.

The new frame, made from lighter and more durable titanium, costs $50, 43% more than the traditional stainless steel frame. The frame is supplied by Foxconn, Apple's major partner in China. The A17 Pro chip in the 15 Pro and 15 Pro Max costs $130, a 27% increase over the A16 used in the 14 Pro and 14 Pro Max. Apple designs the chip itself and then outsources it to TSMC. The cost of the extreme ultraviolet (EUV) lithography machines needed to produce semiconductors has risen sharply, leading to more expensive chips.

On the other hand, prices for NAND chips used in internal memory have fallen due to weak demand. The cheapest iPhone 15 Pro Max has 256GB of storage, double the iPhone 14 Pro Max but costs only 5% more. Apple is not making a 128GB iPhone 15 Pro Max and is raising the price of the cheapest version by $100 to $1,199.

Of all the key components, 29% of the value comes from South Korea. The US contributes the highest proportion of key components at 33%, with Qualcomm and Broadcom supplying communications chips. Japan contributes 10% of iPhone components.

In addition, the cost of components for the cheapest iPhone 15 is $423, up 16%, the iPhone 15 Plus is $442, up 10%, and the iPhone 15 Pro is $423, up 16% compared to a year ago. With the price of essential goods and services rising sharply globally, analysts were quite surprised that Apple kept the price of the iPhone 15 the same in the US, except for the highest-end model. This shows that Apple is cautious about the possibility of affecting sales if it increases prices.

(According to Nikkei)

Tim Cook secretly visits China, looking for ways to salvage iPhone 15 sales Apple CEO Tim Cook made a surprise appearance at a gaming event in China, showing the importance of this market to the 'Apple House' at a time when the company is facing increasingly greater challenges.

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