Production costs for the upcoming iPhone 15 are skyrocketing, setting records for component prices, which could be passed on to customers in 2024, as reported by Nikkei Asia.
It’s been a few weeks now since Apple launched its new iPhone 15, and we now know more about their manufacturing cost. As numerous reports have indicated in recent months, Nikkei Asia also claims that the new iPhone 15s have seen their production prices explode, but this has not really changed the price scale this year. Apple has even reduced the prices of the iPhone 15 in France, thus reducing its margins.
PFor the iPhone 15 Pro Max, the total component cost is now estimated at $558, which represents a significant 12% increase over its predecessor, the iPhone 14 Pro Max, released in 2022. This figure marks the highest total component cost ever for an iPhone. In comparison, between 2018 and 2021, the cost of components for Apple’s “Pro Max” iPhone models was between $400 and $450.
The iPhone 16 could get even more expensive
The price increases are explained by the soaring costs of various key smartphone components. The telephoto lens of the iPhone 15 Pro Max, for example, now costs $30, a staggering 380% increase over the previous model. Likewise, the titanium frame costs $50, a 43% increase over the stainless steel frame used in previous devices. Even the A17 Pro chip is priced at $130, a 27% increase over the A16 Bionic chip.
Other models in the iPhone 15 range are also seeing price increases. The components of the standard iPhone 15 are $423, an increase of 16% over the iPhone 14. The cost of iPhone 15 Plus is calculated at $442, an increase of 10% over its predecessor, while the iPhone 15 Pro sees an 8% increase, for a total of $523.
Rather than increase prices, the company has instead chosen to absorb the impact of these increasing expenses. The problem is that by continuing to absorb these increasing production costs, Apple should start to feel an impact on its profit margins. Therefore, we imagine that the company could decide to increase the retail prices of its iPhone models when the following year’s iPhone 16 line launchesas these are also expected to be more expensive to manufacture than current models.