In a recent teardown analysis, the true cost of manufacturing the iPhone 15 Pro Max has been unveiled. This revelation may come as a surprise to consumers, as the latest flagship iPhone surpasses its predecessor in terms of production expenses.
The breakdown of the bill of materials for the iPhone 15 Pro Max showcases a total cost of $558, indicating a 12% increase compared to the production cost of the iPhone 14 Pro Max. Notably, this cost trend extends across the entire new iPhone lineup: the iPhone 15 Pro costs 8% more than the iPhone 14 Pro, the iPhone 15 Plus is 10% pricier to manufacture than the iPhone 14 Plus, and the standard iPhone 15 is found to be 16% more expensive to produce than its predecessor.
Diving deeper into the specifics of the iPhone 15 Pro Max, it’s revealed that the most costly component is the tetraprism telephoto camera. This innovative lens, enabling a 5x telephoto zoom, comes at a cost 3.8 times higher than the 3x telephoto camera used in previous Pro iPhone models and the smaller iPhone 15 Pro.
| iPhone 15 series bill of materials/MSRP | iPhone 14 series bill of materials/MSRP | |
| Pro Max | $558/$1,199 | $498/$1,099 |
| Pro | $523/$999 | $484/$999 |
| Plus | $442/$899 | $401/$899 |
| Standard | $423/$799 | $364/$799 |
Additionally, the new titanium-clad frame and the A17 Pro chipset contribute significantly to the increased production expenses. These components, in comparison to the prior stainless steel body and A16 Bionic chip in the iPhone 14 Pro Max, have risen in cost by 43% and 27%, respectively.
Despite the escalated manufacturing costs, there’s a silver lining for consumers: Apple has largely maintained stable prices for the new iPhone models. The iPhone 15 Pro Max does sport a $100/£100 higher starting price than the iPhone 14 Pro Max, but it’s accompanied by a storage upgrade as an added incentive. This $100 price bump translates to an approximately 8% increase, with Apple absorbing some of the extra costs.
Nonetheless, it’s important to note that Apple continues to be a profitable enterprise. Even with the rise in the bill of materials for the iPhone 15 Pro Max, the company still enjoys a substantial 53% profit margin on each unit sold. However, this figure does not account for additional expenses such as research and development, marketing, shipping, and packaging.
Despite the minor price hike, the iPhone 15 Pro Max retains its status as a top-tier choice in the smartphone market, and many consider it the best phone available today.
