i-Worry! iPhone 14 Pro Max cost is MORE than iPhone 13 Pro Max

Apple is in worry mode. The iPhone 14 Pro Max production cost has surpassed that of the iPhone 13 Pro Max by a large margin.

The iPhone 14 Pro Max production cost stands at $501. (Amritanshu / HT Tech)

This year, the latest Apple iPhones have created a big problem for Apple- their production cost has skyrocketted to an all-time. The latest report by Nikkei Asia has revealed that the component prices for the latest iPhone 14 lineup soared 20 percent. The report further specified that the cost of the iPhone 14 Pro Max is $501, which is a massive jump from the previous iPhone 13 Pro Max $461 production cost. One of the primary reasons is the new A16 Bionic chipset which costs $100 all alone. Generally, since 2018, the top-end Pro Max models of the iPhone had a range between $400 and $450, Nikkei report has mentioned.

‘'The company has not raised prices for its latest model in the US and some other markets, but higher production costs mean that the company's profit margin has likely shrunk,'' the report suggested. It says that the newly arrived A16 Bionic chipset, which exclusively is available to the Pro models of the iPhone 14 series, costs 2.4 times more than its predecessor A15 Bionic chipset. However, the same A15 chipset is available to the non-Pro avatars of the series - the iPhone 14 and iPhone 14 Plus.

Apart from the latest A16 Bionic chipset, the rise in the production cost of the iPhone 14 Pro Max is also due to the upgrades in display and camera sensors. Apple has used Sony's new CMOS sensors that are said to be 30 percent bigger in size and around 50 percent more expensive than before which increased the cost by $15.

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The report also revealed that the components of the iPhone 14 devices from US-based companies comprise around a third of the total cost. However, it is up by 10 percent in comparison to 2021. Moreover, China's share even shrunk further as Apple tried to limit the dependence on the Asian markets. The earlier reports have revealed that the assembly process is also moving out of the country.

Did you know?

The Nikkei Asia report revealed that the teardown of the iPhone 14 Pro Max has no extra hardware components for the new emergency SOS function. The reason is simple. It is software based. It suggests that the feature will reach more markets in the future.