Rising Production Costs Could Lead to Higher iPhone 16 Prices in 2024

Rising Production Costs Could Lead to Higher iPhone 16 Prices in 2024

High Costs of iPhone 15 Components May Impact Future iPhone Pricing

 

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).