While the iPhone 15 has just made its debut, new rumors surrounding the iPhone 16 line are hinting at potential price increases in 2024, which might not be welcome news for Apple enthusiasts.
A recent report from Nikkei Asia sheds light on the unexpectedly high production costs of the iPhone 15 and its sibling models. These elevated costs could compel Apple to raise the prices of the iPhone 16 next year.
According to the report, the production cost of the iPhone 15 Pro Max for Apple stands at $558, marking a 12% increase over the production cost of the equivalent iPhone 14 Pro Max. Notably, the telephoto camera in the new phone costs 380% more than its predecessor’s, and the titanium frame used in the iPhone 15 Pro Max and iPhone 15 Pro is also more expensive to produce than the aluminum employed in Apple’s iPhone 14 Pro phones.
Similar cost hikes are observed for the A17 Pro chip. The new chipset is reported to cost $130 to produce, reflecting a 27% increase over the previous year’s A16 Bionic. The standard iPhone 15 and iPhone 15 Plus also incur higher production costs than their predecessors, with figures standing at $423 and $442, respectively.
Despite these escalating production costs, Apple chose not to increase the retail prices of the iPhone 15 line when it was launched. By and large, the prices for all four models remained in line with their iPhone 14 counterparts (although Apple did discontinue the 128GB Pro Max model this year).
However, if production costs continue to rise, Apple might find itself compelled to raise the retail prices of the iPhone 16 to safeguard its profit margins. This could potentially mean an iPhone 16 starting at over $799 / £799 / AU$1,499 for the base model, with the iPhone 16 Pro Max (or potentially iPhone 16 Ultra) beginning at more than $1,199 / £1,199 / AU$2,199.
It’s worth noting that some of the cost increases are due to Apple’s own decisions, such as using titanium in their phones, which naturally leads to higher production expenses. Nevertheless, recent months have witnessed a surge in basic raw material costs, and ultimately, consumers may bear some of that burden.
The silver lining in this situation is that Apple’s iPhones are renowned for their longevity, and the iPhone 15 line is no exception. While we look forward to reporting on the likely technological advancements with the iPhone 16 next year, the decision to invest in Apple’s latest and greatest handsets will depend on individual financial considerations and preferences.
