All components of iPhone 14 Pro Max cost about $501 – less than 46% of the retail price

All components of iPhone 14 Pro Max cost about $501 – less than 46% of the retail price

Nikkei's publications dissected the senior iPhone 14 Pro and estimated that the cost of Apple's new smartphone components had risen by about 20% compared with the previous generation's models. The production costs of the American company had risen to a record level, probably indicating a decline in profitability, as Apple and several other countries did not raise the prices of the new iPhone.

At the same time, the base version of iPhone 14, with no new functions, continues to be in line with Apple's strategy, according to which only flagship smartphone models receive important innovations and advanced hardware. Apple , says Minatake Kashio, a representative of the Tokyo research company Fomalhaut Technology Solutions, which helped Nikkei evaluate components of three iPhone 14 models.

Fomalhout experts calculated that the production of iPhone 14 Pro Max in a charge of $501, which is more than $60 higher than last year's iPhone 13 Pro Max components. The cost of Apple's flagship smartphone components has fluctuated around $400-450 since they were launched in 2018. However, this year, the cost of the components for iPhone 14 Pro Max increased by $60, which is the most significant leap in the existence of Apple smartphones.

The source notes that the cost of the new iPhone 14 in Japan has increased relative to the previous generation's models, and smartphones have also increased in Europe, and price increases may indicate that an American company has decided to shift additional production costs to consumers, while the retail value of Apple smartphones has remained the same in the US and China.

The increase in the cost of flagship models of iPhone 14 Pro is mainly due to the cost of Apple A16 Bionic microprocessors. Only Taiwanese TSMC and South Korean Samsung can produce their own Apple chip, which is 2.4 more expensive than last year ' s Apple A15 Bionic processor. The new Apple processor is based on the 4 nm process, and only Taiwanese TSMC and South Korean Samsung can produce mass such chips at present. In addition, new camera components, including the Sony CMOS image sensor, which is worth $15, are available in iPhone 14 as compared to the previous year ' s average.

The components for iPhone 14 are mainly supplied by United States companies, which account for 32.4% of the components, which have increased by about 10% over the previous year. South Korean suppliers' share has declined to 24.8%. Apple has transferred most of the production of the iPhone to China, but in the face of tensions between Underwear and the United States, the company has diversified production in other countries, such as India. The revision of the electronic and other components supply chains may change Apple's strategy in the future.