A new report from Nikkei says that a teardown of the iPhone 15 Pro Max shows that the cost of the components used to build the device is up to $558. The higher bill of materials (BOM) will affect Apple's profit margins.
The input cost to produce each 256GB iPhone 15 Pro Max is about $558.
While the iPhone 15 Pro Max starts at $1,199, $100 more than the iPhone 14 Pro Max, it comes with 256GB of storage compared to the iPhone 14 Pro Max's 128GB. Since the 256GB version of the iPhone 14 Pro Max also costs $1,199, Apple is essentially keeping the iPhone prices the same this year. However, the higher BOM per unit means less profit.
Part of the higher cost is due to the addition of the first periscope lens in iPhone history. Only available on the iPhone 15 Pro Max, the quad-lens system gives the iPhone 15 Pro Max 5x optical zoom, resulting in the device's telephoto camera costing 3.8 times what Apple spent on the telephoto camera used on the iPhone 14 Pro Max. The much-touted titanium frame costs 43% more than the stainless steel on the iPhone 14 Pro Max, and the display on the new phone is 20% more expensive than its predecessor.
Apple paid TSMC 27% more for the 3nm A17 Pro chip compared to the A16 Bionic. A recent report said that TSMC gave Apple a great deal this year, in which the foundry would cover the cost of defective dies, saving Apple millions of dollars.
As for the iPhone 15 Pro, Apple is said to spend 8% more on manufacturing costs compared to the iPhone 14 Pro, with a BOM of $523 per unit. The parts used to build the iPhone 15 Plus cost $442, 10% more than the iPhone 14 Plus. The biggest increase over its predecessor is for the base iPhone 15, with a BOM of $423, 16% more expensive.
The reason for the sharp increase in BOM costs of the iPhone 15 and 15 Plus stems from new features such as Dynamic Island as well as the upgrade of the main image sensor from 12 MP to 48 MP.
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