It costs Apple $464 to make an iPhone 14 Pro Max

Ink

Administrator
Thread author
Verified
Staff Member
Jan 8, 2011
22,490
As always, it’s important to keep the bigger picture in mind when looking at cost numbers like these.
A new report from Counterpoint Research today offers a look at how much it costs Apple to make the iPhone 14 Pro Max. According to the data, the so-called “blended bill of materials” cost for this year’s flagship with 128GB of storage comes in at $464, a slight increase compared to last year’s iPhone 13 Pro Max.
The data from Counterpoint Research seen by 9to5Mac shows that the iPhone 14 Pro Max is roughly 3.4% more expensive for Apple to make than the iPhone 13 Pro Max. The primary reason for this increase is the new 48MP rear camera as well as the new always-on display.

Prices for certain components have also gone down this year, with one of the most notable price drops impacting cellular components. “Compared with that of its predecessor, the iPhone 14 Pro Max’s blended cellular group cost share dropped to 13% due to a fall in component prices as 5G cellular technology rises in popularity,” the report says.

Other tidbits worth noting from Counterpoint’s report on how much it costs Apple to make the iPhone 14 Pro Max:
  • The A16 Bionic chip costs Apple around $11 more per unit than the A15 Bionic chip.
  • The overall “processing” category, which includes the A16 Bionic chip, now accounts for 20% of the total materials cost.
  • Apple’s self-designed components have a larger share in the overall BoM cost of the iPhone 14 Pro Max than in that of the iPhone 13 Pro Max. Apple’s self-designed components account for 22% of the overall BoM cost of the iPhone 14 Pro Max.
  • Producing a 128GB iPhone 14 Pro Max mmWave smartphone costs Apple up to $474.
  • Producing a sub-6GHz 128GB iPhone 14 Pro Max comes to $454.
 
F

ForgottenSeer 98186

1676313087988.png


The big picture is that consumers are being gouged. They always have been gouged by Apple. Just look at Apple quarterly earnings. That company has never, ever, hurt for profit. Plus it pays virtually zero taxes.
 

MuzzMelbourne

Level 15
Verified
Top Poster
Well-known
Mar 13, 2022
599
View attachment 272870

The big picture is that consumers are being gouged. They always have been gouged by Apple. Just look at Apple quarterly earnings. That company has never, ever, hurt for profit. Plus it pays virtually zero taxes.

No... gouging is what BP, Shell, et al. are doing. Largest quarterly profits in their corporate history whilst blaming the Ukrainians. 400% price increase in domestic gas in Australia, controlled by BP and Shell, blamed on the Ukrainians.

Apple charge a fair price for a premium product that is always the market leader in innovation.
 
F

ForgottenSeer 98186

Apple charge a fair price for a premium product that is always the market leader in innovation.
Nah. A consumer can get the same performance and a whole lot more usability on a Windows system for 30 to 50% less.

So many consumers ante up $2000 USD for an Apple laptop experience that they can get from a $700 Chromebook.

Rubbish. Consumers have many choices. No one is forced to buy an iPhone 14 Pro Max. #selfentitled
Those that choose to buy Apple are gouged. The fact that consumers have other choices has nothing to do with it.
 

Zero Knowledge

Level 20
Verified
Top Poster
Content Creator
Dec 2, 2016
849
I'm 50/50 on this because I actually like Apple in a weird way. Yes, we are being gouged now for everything now because Ukraine war blah blah blah, from fuel, gas, electricity, clothes, shoes, and especially food but at the same time iPhones are quality products with a quality software ecosystem with high levels of security and medium levels of privacy. iPhones (especially the Pro & Max models) are one of the few consumer products that are actually worth paying a premium for.
 
F

ForgottenSeer 98186

You're contradicting yourself. When you willfully choose, you cannot be "goughed". #selfentitled
That is not how English works. "Gouged" means overcharged - even when the buyer agrees to the price. Willing Apple buyers have been "gouged" for years.
 
  • Like
Reactions: goodjohnjr

MuzzMelbourne

Level 15
Verified
Top Poster
Well-known
Mar 13, 2022
599
I'd like to comment again on this, but realised he's joking.

Haha... people can get the same experience on a $700 Chromebook as a $2000 Mac Book. Hilarious, funniest thing i've read on here in ages.

You kill me Oerlink, hahaha...
 

MuzzMelbourne

Level 15
Verified
Top Poster
Well-known
Mar 13, 2022
599
That is not how English works. "Gouged" means overcharged - even when the buyer agrees to the price. Willing Apple buyers have been "gouged" for years.

If you are referencing something you said, you don't use quotes. If your talking about a concept, you use single quotes. If your just talking about a word that is in the dictionary, you don't use anything.That's how English works. Make a choice...
 
F

ForgottenSeer 98186

Wow, you are so wrong on this its embarrassing to watch.
Price gouging has nothing to do with how many options consumers have. It has everything to do with excessive margins - which Apple has been criticized about for decades by consumer groups.

If a consumer has 1000 different products to choose from, it still does not change the fact that company "A" is charging a gross margin that is way above the industry average.
I'd like to comment again on this, but realised he's joking.

Haha... people can get the same experience on a $700 Chromebook as a $2000 Mac Book. Hilarious, funniest thing i've read on here in ages.

You kill me Oerlink, hahaha...
It seems awfully stupid to spend $2000 for an Apple MacBook pro to only use it to surf the web, watch some movies, listen to some music and little bit of text editing or paper writing.

You tell me what value a $2000 Apple laptop adds to any of that? Nothing. That's what. The same person can buy a premium Chromebook and it will do the same thing, with a 12+ hour battery life.

If you are referencing something you said, you don't use quotes. If your talking about a concept, you use single quotes. If your just talking about a word that is in the dictionary, you don't use anything.That's how English works. Make a choice...
Oh please. Try harder.
 
  • Like
Reactions: goodjohnjr

jetman

Level 10
Verified
Well-known
Jun 6, 2017
475
Added to the manufacturing costs, there is also marketing and distribution.

Then there is free lifetime support for your device- either on the telephone or face-to-face in an Apple shop. You don't get this with Android phones.

Apple also tend to support their products for at least 5 years. Sometimes longer. Another thing you don't usually get with Android.

And I think that with Apple you pay up-front in cash rather than paying with your personal information. Android includes a lot of data-gathering activity which Google then tries to use for advertising purposes. I'm sure Apple does this to some extent, but their whole business model isn't based around advertising like Google is.
 

Sorrento

Level 9
Verified
Well-known
Dec 7, 2021
404
I bought my other half a Mac Book Air (around £1000 UK Pounds) well over a year so & she still loves it, she uses Office 365 (whatever new name is) on it quite a bit something you can not do with a ChromeBook - No adds & a greater privacy than Googlies offering gives - As for iPhones I usually buy a new model before or even two instead of the latest iPhone - I don't have to remove junk before I use it - I will always stay with an iPhone/iPad - I respect others opinion though.
 

Freki123

Level 16
Verified
Top Poster
Aug 10, 2013
753
  • Like
Reactions: Sorrento

enaph

Level 29
Verified
Honorary Member
Top Poster
Well-known
Jun 14, 2011
1,804
At the end of the day it's all about the personal preference.
It's one's decision what he's willing to spend his money on and how much he's willing to pay for it.
Companies make products to sell them and make a profit and consumers decide if they agree to pay the price - this is how market works.
 

About us

  • MalwareTips is a community-driven platform providing the latest information and resources on malware and cyber threats. Our team of experienced professionals and passionate volunteers work to keep the internet safe and secure. We provide accurate, up-to-date information and strive to build a strong and supportive community dedicated to cybersecurity.

User Menu

Follow us

Follow us on Facebook or Twitter to know first about the latest cybersecurity incidents and malware threats.

Top