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20% increase in production cost of iPhone 14 compared to iPhone 13

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The Nikkei Asia website recently announced that the price of parts used in the latest iPhone model has increased by 20% and reached its highest level in history. Based on this, the production cost of iPhone 14 Pro Max is equal to 501 dollars, which shows a huge growth compared to the production cost of 461 dollars of the previous generation handset. The A16 Bionic chip is the main reason for this price increase; A piece that alone costs $110.

According to Nikkei Asia website, the price of iPhone Pro Max since the introduction of this model in 2018 has varied between 400 and 450 dollars. This news website claims with a logical hypothesis that if Apple does not increase the price of its handsets in the United States at the same time as the production costs increase; In this case, it will probably hurt its profit margin.

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The price of the A16 Bionic chip is about 2.4 times more expensive than the A15 processor. The two new non-pro iPhone models, including the iPhone 14 and iPhone 14 Plus, use the A15 chip. Sony’s new CMOS sensors are another reason for increasing the price of new iPhones. Compared to the previous generation, these sensors are 30% larger and at the same time 50% more expensive. As a result, the initial pricing of these sensors has reached $15. Also, Apple buys the screens it needs from Samsung Display; A deal that has been going on for years.

The cost of parts used in iPhone 14 family devices that are produced by American companies; It is almost equivalent to a third of the total cost of making these devices and the price of these parts has increased by about 10% compared to 2021. South Korea is the second largest supplier of parts used in Apple iPhones. This phenomenon basically comes from the fact that Apple personally develops many of its products, including chips.

The attempt of the Cupertino giant to reduce its dependence on the Asian market has caused a double decrease in China’s share of the supply of iPhone parts. According to previous reports, Apple is not only looking to supply some of the parts it needs from non-Chinese manufacturers; Rather, it tries to move its product assembly sites outside of China.

An autopsy performed on the new iPhones showed that Apple did not use any additional hardware to provide the emergency SOS function; Because this characteristic has a software nature. Therefore, the mentioned feature will probably be available in more markets in the near future.

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Adib

Adib Zahedi is the CEO and Founder of mazhd.com. He has nearly a decade of experience in IT, including two years spent working on a Youtube Chennal. He is also an author and writes articles for mazhd.com. Has articles include tutorials and covers everything from Windows PCs to smartphone's software.

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