The American funding financial institution TD Cowen has revealed a report (through AppleInsider) breaking down the person components of the iPhone 16 telephones and analyzing their respective prices. This invoice of supplies, or BOM, reveals the pure manufacturing prices of the system. (Clearly there are different bills, from R&D to advertising and marketing and transport. However that is what it prices to fabricate.)
Learn on to search out out. With this data you possibly can shock your Android-using associates and, who is aware of, possibly even persuade them to modify to the iPhone. Properly, most likely not. However no less than you have put the info on the desk.
The iPhone 16 prices greater than the iPhone 15… however not by a lot
The Japanese newspaper Nikkei, which we publish aforementioned (translation) final 12 months, when discussing the manufacturing prices of the iPhone 15, was shocked that vital will increase in manufacturing prices had not led to a rise within the gross sales value. The article predicted that Apple must increase costs when it launched the iPhone 16… however fortuitously, the authors had been unsuitable with this prediction. As we now know, Apple will keep the identical value for an additional 12 months.
That is although manufacturing prices have elevated once more, though solely marginally. For instance, from $395 for the usual iPhone 15 to $416 for the iPhone 16: a rise of $21, or 5 p.c.
The most important expense on the invoice of supplies is the display at $65. However the largest relative price enhance is RAM, which to assist Apple Intelligence has gone from 6GB to 8GB, and this implies a whopping 89 p.c value enhance, from $9 to $17. In the meantime, the bounce The A16 to A18 chip prices an extra $10, and the brand new controls (digital camera management and motion button) are solely $3 complete. And several other parts have dropped in value, together with the display, which price $3 extra within the earlier technology.
Here is how the prices are distributed for the usual fashions this 12 months and final 12 months:
TD Cowen
What concerning the iPhone 16 Professional Max?
The iPhone 16 Professional Max additionally prices extra to fabricate than its rapid predecessor, however once more the will increase are manageable. Shared on the high of the price listing are the rear digital camera and display, at $80 every, whereas RAM is once more the most important relative enhance. It has elevated 41 p.c, from $12 to $17, though the quantity of RAM has not elevated; the 15 Professional Max additionally got here with 8GB. Fairly, the worth enhance this 12 months is right down to know-how: LPDDR5 was used within the 15 Professional Max whereas the sooner LPDDR5X seems within the 16 Professional Max.
Total, the iPhone 16 Professional Max is $32 dearer to fabricate than the iPhone 15 Professional Max, and TD Cowen attributes 40 p.c of this to inflation and 60 p.c to new parts.
How dependable are these numbers?
Earlier than you rush to brag about Apple’s generosity in holding the worth degree regardless of rising prices, a phrase of warning: Not everybody agrees with the numbers. In reality, TD Cowen’s estimates differ considerably from these made by Nikkei and Fomalhaut Technological Options.
For instance, Nikkei and Fomalhaut estimate the iPhone 15 Professional Max display at $115, in comparison with TD Cowen’s $75. The distinction is even better for the chip: TD Cowen estimates $40, Nikkei a whopping $130. Total, Nikkei’s estimate for the iPhone 15 Professional Max is 23 p.c greater than TD Cowen’s.
The disparity is probably going as a result of firms’ totally different origins: TD Cowen is an funding financial institution, whereas Fomalhaut Techno Options focuses on taking aside digital merchandise, tracing the person parts to their producers after which estimating their value.
This text initially appeared on our sister publication. macwelt and was translated and localized from German.