With the help of technology solutions firm Fomalhaut Techno Solutions, Nikkei disassembled and analyzed the costs of the four iPhone 15 models: iPhone 15, 15 Plus, 15 Pro, and 15 Pro Max, the smallest storage version.
The iPhone 15 Pro Max uses a telephoto camera supporting 5x optical zoom and a chip manufactured using a 3nm process. The estimated production cost of the model – the total cost of all components – is $558, a 12% increase compared to the iPhone 14 Pro Max launched in 2022.
According to Nikkei , the cost of Pro Max components ranged from $400 to $450 between 2018 and 2021. Formalhaut CEO Minatake Kashio pointed out that to increase the device's performance, increased costs were unavoidable. Last year, component costs increased by approximately 20% compared to the previous year. This trend continues to this day.
The cost-to-price ratio of the iPhone 15 Pro Max is 47%, a 1% increase compared to the iPhone 14 Pro Max. The price of the telephoto camera – an improvement 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 smaller lens.
The new frame, made from lighter and more durable titanium, costs $50, 43% more than the traditional stainless steel frame. The frame supplier is 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 chips itself and then outsources manufacturing to TSMC. The cost of extreme ultraviolet (EUV) lithography machines needed to manufacture semiconductors has risen sharply, resulting in more expensive chips.
On the other hand, the price of NAND chips used for internal memory has decreased due to weakening demand. The cheapest iPhone 15 Pro Max has 256GB of storage, double that of the iPhone 14 Pro Max, but only costs 5% more. Apple did not produce a 128GB version of the iPhone 15 Pro Max and increased the price of the cheapest version by $100, to $1,199.
Of all the major components, 29% of the value comes from South Korea. The US contributes the highest percentage of major components at 33%, with Qualcomm and Broadcom supplying communication chips. Japan contributes 10% of iPhone components.
Furthermore, 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 prices of essential goods and services rising sharply globally, analysts were quite surprised that Apple kept the prices of the iPhone 15 the same in the US, except for the top-of-the-line model. This suggests Apple is cautious about the potential impact on sales if it raises prices.
(According to Nikkei)
Source
Comment (0)