The $1,199 iPhone 15 Pro Max costs $502 to make, report says

Have you ever wondered how much it costs to make your phone? Here are some ideas.

The $1,199 iPhone 15 Pro Max (the base variant – 8/256GB) costs Apple $502 to make, according to a report from Search for counterpoint complaints.

The BoM (which stands for “blended bill of materials”) report reveals what has changed in terms of production prices and if you feel like it, you could shed a tear for Apple, because everyone iPhone 15 Pro Max it costs them 8% more than what they paid to make the iPhone 14 Pro Max (via 9to5Mac).

That’s $37.70 more, but where exactly does the difference come from? And is this unusual? Well, maybe, since the difference between iPhone 14 Pro Max and the iPhone 13 Pro Max was only a 3% increase.

Where does the price increase come from?

In short, there are three key areas that make everyone iPhone 15 Pro Max more expensive to produce: the 3 nanometer A17 Pro chip, the new 5x telephoto lens system which is based on a tetraprism and the titanium frame.

“Apple’s next-generation mobile platform, the A17 Pro, uses TSMC’s most advanced 3nm manufacturing technology and contains more than 19 billion transistors in one chip, 18% more than that of the A16 Bionic. Thanks to the improved 6-core GPU architecture, the GPU performance of iPhone 15 Pro Max is 20% faster,” the report said.

Costs have fallen for Apple for two important components: memory and display. In fact, Apple has updated the iPhone 15 Pro Max’s RAM at 8 GB, 2 GB more than that of its predecessor. However, the global memory market saw a downward trend between the fourth quarter of 2022 and the third quarter of 2023, leading to a price drop of more than 30%. Display prices are also in a downward trend. Besides Samsung Display, LG Display has also started providing LTPO displays for iPhone.

It is important to note that this year, Apple is offering more self-designed components in the iPhone 15 lineup. The report states that Apple-designed components account for 25% of the total BOM cost of the product. iPhone 15 Pro Maxcompared to 22% in the iPhone 14 Pro Max Last year.

Despite the increase in production costs and the fact that it is the most expensive iPhone to manufacture, the iPhone 15 Pro Max is still the model with the highest profit margin in this year’s lineup. So, save the tears of compassion for another day…