The iPhone 16 series will cost Apple more to produce than the iPhone 15 series due to higher component costs, analysts say.
In addition to disassembling the latest iPhone models, experts also analyzed their costs. Recently, the iPhone 16 series was analyzed for the cost of each component, showing that this year's iPhone series is more expensive than the iPhone 15 generation.
iPhone 16 Pro.
This isn't surprising, as the iPhone 15 Pro Max costs about 12% more than the iPhone 14.
According to TD Cowen, a 256GB iPhone 16 Pro Max costs about $485 to manufacture, including components, boxes, and assembly. Previously, the iPhone 15 Pro Max had a $453 bill of materials (BOM), about $32 cheaper than the newer iPhone model.
The standard iPhone models are also more expensive, with the BOM of the iPhone 16 reaching $416. Previously, the BOM of the iPhone 15 was only $395, about $21 cheaper.
For the iPhone 16 Pro Max, the most expensive component is the part between the screen and the rear camera module at $80 (about 1.96 million VND) - accounting for 16% of the total cost. The camera is also the component that has increased in price the most, at $10 (about 246 thousand VND) compared to the previous generation.
While the numbers remain the same, the cost of memory and storage in the iPhone 16 Pro Max has increased. Each component has increased by $5 to $17 and $22, respectively.
Regarding the BOM of the iPhone 16, the display is the most expensive component at $65, equivalent to 16% of the total cost. The price of memory has also increased, from $9 for the iPhone 15 with 6GB RAM to $17 for 8GB RAM on the iPhone 16.
Other big cost changes in the iPhone 16 BOM include: the A18 chip costs $45, up from $35 for the A16 chip. Meanwhile, the addition of Camera Control and Action Button also costs $3 more.
The "hotness" of the iPhone 16 series is cooling down
The same report also said that there is no change in the estimated output of the supply chain in the second half of 2024. However, the "hotness" of the iPhone 16 series is decreasing over time.
Part of the reason is that Apple Intelligence isn’t ready for release yet. It also has “competitive headwinds” in the Chinese market, with the foldable Huawei Mate XT performing much better than expected.
The production cost of iPhone 16 Pro Max is more expensive than its predecessor.
Research shows that iPhone sales in China were steady in July at 24.2 million, up 30% year-on-year. However, the situation is getting more difficult starting in September as market demand weakens in the coming period.
TD Cowen's Q3 iPhone sales forecast is unchanged at 45 million units, with Q4 iPhone sales expected to remain at 80 million units. The iPhone 16 series will account for about 65 million units.
Analysts believe that the iPhone 16 Pro and iPhone 16 Pro Max will be more popular than the iPhone 15 Pro in the second half of the year. It is estimated that sales of the iPhone 16 Pro and iPhone 16 Max will account for 66% of total iPhone sales instead of 58% of the iPhone 15 Pro and iPhone 15 Pro Max in the same period last year.
