iPhone 15's Record High Production Costs Could Push Up iPhone 16 Prices

[MacRumors]

The iPhone 15's production costs are appreciably higher than those of last year's iPhone 14 models, marking record high component prices that Apple could pass onto customers in 2024, Nikkei Asia reports.

The iPhone 15 Pro Max is calculated to cost $558, a 12% increase over the iPhone 14 Pro Max model released in 2022. This is a record high for the total cost of an iPhone's components. From 2018 to 2021, the total cost of parts for Apple's iPhone "Pro Max" models ranged from $400 to $450. Component costs rose around 20% in 2022 before reaching today's record high of $558.

The cost of the iPhone 15 Pro Max's telephoto camera now stands at $30, a 380% increase over the previous model. Likewise, the titanium frame costs $50, a 43% increase over the stainless steel frame of previous devices. The A17 Pro chip comes in at $130, a 27% increase over the A16 Bionic chip.

The other models in the iPhone 15 lineup are also not immune to cost increases. The standard iPhone 15's components come in at $423, a 16% increase compared to the iPhone 14. The iPhone 15 Plus is calculated at $442, a 10% increase over its predecessor, while the iPhone 15 Pro grew by 8% to $523.

Despite increased costs, Apple did not increase the retail prices of any of its iPhone models this year and chose to absorb the impact of increased expenses. The only notable change was the discontinuation of the 128GB Pro Max model, meaning that users who normally purchased the 128GB model now have to pay $100 more to obtain the device.

In collaboration with Nikkei, Tokyo-based research company Fomalhaut Techno Solutions believes that if Apple continues to absorb the impact of increased production costs, its bottom line will soon take a hit. As a result, Apple may finally choose to hike iPhone retail prices upon the launch of next year's iPhone 16 lineup.

Article Link: iPhone 15's Record High Production Costs Could Push Up iPhone 16 Prices

 

[I7guy]

For those who say apple won’t lower its margins….interesting estimated costs. Wonder how accurate they are?

 

[xpxp2002]

God forbid Apple only make 40% or 45% profit margin on these devices…

 

[mnsportsgeek]

Another year of this huh? How many more years you gonna predict a price increase before you’re finally right?

 

[HobeSoundDarryl]

Higher prices??? UNNNNNNprecedented!

 

[MayaUser]

no higher starting price for the iphone 16 pro max for sure
Probably they will go with iphone 16 pro adding 100 extra with starting 256ssd

 

[TigeRick]

He forgot to count in the lower cost of upcoming Soc A18/Pro with N3E process which comes with lower BOM

 

[foobarbaz]

Keep guessing! Eventually, the more expensive iPhone rumor will turn out correct.

 

[kirk.vino]

It’s kinda ironic and funny though considering that the 256GB module does not cost $100 more than the 128GB one to manufacture, so Apple has already passed this price hike to their customers in a way.

 

[Ivander]

Here we go again...

 

[vorkosigan1]

Or...component costs could decline over time, as they always have (barring acts of God).

 

[Fuzzball84]

Having a production line that can deal with hot products doesn’t come cheap!

Especially when the workers all need oven gloves!

 

[citysnaps]

God forbid Apple only make 40% or 45% profit margin on these devices…

Not an unreasonable number.

Do you have insight into Apple's overhead and indirect costs, which GPM doesn't cover?

 

[yabeweb]

I can almost predict that the iPhone 17 will raises cost even more.

 

[jav6454]

Likely, the cost premium of higher capacity NAND is what played a role into keep current prices.

 

[Mrkevinfinnerty]

Kitchen sinking the bad news a year in advance. Tim has got Apple working like a well oiled machine

 

[jicon]

It’s kinda ironic and funny though considering that the 256GB module does not cost $100 more than the 128GB one to manufacture, so Apple has already passed this price hike to their customers in a way.

Exactly. If the four cameras have a cost of $30, I'm more than certain the additional 128GB of storage is costing a fraction of that.

 

[chucker23n1]

God forbid Apple only make 40% or 45% profit margin on these devices…

Those 40-45% have to pay for hardware and software engineering. Developing iOS, for instance.

 

[scrapesleon]

the production cost is simply the same if u factor in inflation but we know the price of the iPhone will eventually increase

 

[jz0309]

We’ll get some idea when Apple announces Q4 earnings… these numbers are a pure guess, nothing more

 

[120FPS]

I think Apple will increase prices either way as fewer customers may be buying new phones as often due to minor advancements.

 

[Aston441]

Good thing Walmart doesn't make them or the retail price would be $559.98 They'd make it up on volume of course.

 

[contacos]

At those prices I am ready to try a Fold next fall just to try something different. I’ll still have my 15 Plus for my iOS needs

 

[a m u n]

The base model, S23 Ultra, costs over 1300€, without having the costs of developing the operating system, App Store or iCloud, maintenance of data centers, hardware is developed by Qualcomm (processor, sensors, modem), and I could continue, from lag to disastrous UI / UX.

I don’t understand why people forget that they are more expensive phones than the iPhone with no reason to be more expensive.

 

[R2DHue]

The iPhone 15's production costs are appreciably higher than those of last year's iPhone 14 models, marking record high component prices that Apple could pass onto customers in 2024, Nikkei Asia reports.

The iPhone 15 Pro Max is calculated to cost $558, a 12% increase over the iPhone 14 Pro Max model released in 2022. This is a record high for the total cost of an iPhone's components. From 2018 to 2021, the total cost of parts for Apple's iPhone "Pro Max" models ranged from $400 to $450. Component costs rose around 20% in 2022 before reaching today's record high of $558.

The cost of the iPhone 15 Pro Max's telephoto camera now stands at $30, a 380% increase over the previous model. Likewise, the titanium frame costs $50, a 43% increase over the stainless steel frame of previous devices. The A17 Pro chip comes in at $130, a 27% increase over the A16 Bionic chip.

The other models in the iPhone 15 lineup are also not immune to cost increases. The standard iPhone 15's components come in at $423, a 16% increase compared to the iPhone 14. The iPhone 15 Plus is calculated at $442, a 10% increase over its predecessor, while the iPhone 15 Pro grew by 8% to $523.

Despite increased costs, Apple did not increase the retail prices of any of its iPhone models this year and chose to absorb the impact of increased expenses. The only notable change was the discontinuation of the 128GB Pro Max model, meaning that users who normally purchased the 128GB model now have to pay $100 more to obtain the device.

In collaboration with Nikkei, Tokyo-based research company Fomalhaut Techno Solutions believes that if Apple continues to absorb the impact of increased production costs, its bottom line will soon take a hit. As a result, Apple may finally choose to hike iPhone retail prices upon the launch of next year's iPhone 16 lineup.

Article Link: iPhone 15's Record High Production Cost Could Push Up iPhone 16 Prices

Why, when it comes to the astonishing reduction in prices of technology over time, are SSD prices falling so (comparatively) slowly⁉️

Why does 4TB still cost a fortune?!

And does anybody know what the hell Apple got out of its half-a-Billion dollar acquisition of Anobit⁉️

You’d think that the Vertical Integration would bring down SSD prices for Apple products, but no!