Market research firm TD Cowen has disclosed the total manufacturing expense (bill of materials) for the 256GB iPhone 16 Pro Max. This includes the costs of components, assembly, and packaging. Their findings indicate that the total manufacturing cost for the 256GB iPhone 16 Pro Max is $485, which is nearly one-third of its retail price.
High Costs for Display and Cameras
To provide some context, the manufacturing cost of the iPhone 15 Pro Max is $453, which is $32 (or 7%) less than the iPhone 16 Pro Max. According to the analysis, the display and rear camera system are among the most costly components of the iPhone 16 Pro Max. The rear camera system alone constitutes 16% of the overall manufacturing cost. Interestingly, the display panel and touchscreen have the same expense as the rear camera system.
In contrast, the back camera setup of the iPhone 15 Pro Max costs $70, representing 15% of its total manufacturing cost. This difference might stem from the fact that the 12MP ultrawide camera in the iPhone 15 Pro Max is cheaper than the 48MP camera in the latest model.
Minor Increases in Component Costs
Additionally, the new A18 Pro chip featured in the latest iPhone is only $5 more expensive than the A17 Pro chip used in its predecessor. Costs for memory and storage have also risen by $5 each. Other enhancements, like the larger battery, reportedly remain at the same cost of $15.
Notably, the bill of materials for the standard iPhone 16 has risen to $416, up from $395 for the previous model. Apple has also set the price of the iPhone 16 at $100 higher on its US website compared to the iPhone 15.
New Features and Current Limitations
All models in the iPhone 16 series now feature a new Capture button, enhancing camera accessibility. Interestingly, the BOM analysis does not mention this newly introduced button, despite a prior report suggesting it could cost users up to $750 to replace. Currently, the main selling feature of the new devices—Apple Intelligence—is still in its beta phase.
